bcarya Started The Discussion:
All Resp. Seniors,
Plz. guide me in the below matter.
Suppose, an employee join a company on 01-04-1979 and suspended on 10-11-1996 due to some misconduct The enquiry goes on and the charges proved and accordingly terminated on 12-06-2001. During suspension, suspension allowance was paid to him.
Now, my doubt is about the pension scheme applicability to him.
Plz. guide me that was he applicable for Pension under the Act..?? If yes, then how..??
Thanks in advance.
Dear Rajendra Bhavsar,
Under section 2(b) of EPF & MP Act, Basic Wages- subsistence allowances paid to the suspended employees does not constitute wages and not liable for deduction of Provident Fund. But subsistence allowance is part of wages under sec 2(VI) of payament of Wages act & Clause 22 of sec(2) under ESIC Act hence ESIC deduction is permissible on Subsistence allowances.
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