Dear Professionals, when an employee is paid a subsistence allowance during the period of suspension pending an enquiry, what are the deductions we need to proceed with—both ESI & PF or only ESI? Please clarify.
From India, Madras
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3From India, Madras
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Subsistence Allowance and Deductions
There are two viewpoints. One is that subsistence allowance is not considered wages/salaries; hence, PF is not to be deducted.
The Supreme Court upheld that subsistence allowance forms part of wages; hence, ESI is deductible.
Please also view the following link for a better understanding: http://Citehr.com/477402-can-we-dedu...e%20allowance.
From India, Aizawl
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There are two viewpoints. One is that subsistence allowance is not considered wages/salaries; hence, PF is not to be deducted.
The Supreme Court upheld that subsistence allowance forms part of wages; hence, ESI is deductible.
Please also view the following link for a better understanding: http://Citehr.com/477402-can-we-dedu...e%20allowance.
From India, Aizawl
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ORDER OF PF AUTHORITY ON SUBSISTENCE ALLOWANCE.pdf
PF & ESI.zip
Presentation PF&ESI.ppt