Umakanthan53
Labour Law & Hr Consultant
KK!HR
Management Consultancy
Sat1807
Service
+1 Other

After suspension what is the percentage of subsistence payable and till what period? When is the subsistence allowance increased and after what period? Will an employee be paid a full salary during suspension?
From India, Coimbatore
The rate and duration of payment of Subsistence Allowance have to be regulated as per the Standing Orders applicable to the industry concerned. It appears, the Unit has no Certified Standing Order, so in its absence the State Rules are applicable, which would include Model Standing Order/Standard Standing Order as the case may be, has to be followed.
From India, Mumbai
Dear ksn,

If your industrial is situated in the State of Tamilnadu, then you have to follow the provisions of the Tamilnadu Payment of Subsistence Allowance Act,1981. The Act applies to all establishments other than a Public Sector Undertaking of the Central Government, office of the central or state government departments, railways, mine or oilfield or any major port.

The rate of subsistence allowance prescribed u/s 3 of the Act is follows;
a) The first 90 days - 50% of the monthly wages drawn immediately before suspension
b) Next 90 days - 75% ----- do--------
c) Beyond 180 days - 100% ---- do --------

It can be reduced to 50% if the delay in the disposal of the enquiry is cause by the employee.
It can also be denied if the employee is found to gainfully employed in any other establishment during the period of suspension.

From India, Salem
Hi

If your establishment has a Standing Order or Service Rules, then the subsistence allowance is payable as per the terms of the same.

In the absence of the SO/SR you have to pay full salary drawn by the employee at the time of suspension.

The employee is eligible to receive the subsistence allowance till the date of his dismissal

As mentioned by Sri Umakanthan Sir, if your establishment is situated in the State of Tamil Nadu you have to follow the State Act.

Regards
P S Lakshmanan
S G Management Services
Kolkata

From India, Kolkata
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