Is It Right to Deduct EPF and ESI from Subsistence Allowance? Urgent Guidance Needed

virenderhr

Dear Friends,

We are deducting EPF and ESI on a subsistence allowance (75%) given to an employee. Is this a right practice as per the act? Kindly guide me, it's urgent...

malikjs

Dear Virendra,

PF should not be deducted on subsistence allowance, but ESI is to be deducted.

Thanks,
JS Malik

virenderhr

Thanks, sir, but we have deducted this time. What should we do? I request you to provide any reference for this case that I can forward to my seniors.

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