Subsistence Allowance Dilemma: Should It Be Paid Regardless of Physical Attendance?

Dear seniors,

Whether a subsistence allowance or a suspension allowance (50% or 75% of the gross amount, as the case may be) should be paid on physical reporting days, or physical attendance is not mandatory, and we should pay the amount irrespective of the person's reporting days.

Regards,
SRP

Dear,

Subsistence Allowance is payable only for physical attendance.

Thanks,
Amit Kumar Tawar

Subsistence allowance is a minimum sum given for a specific purpose. Attendance is incidental yet secondary. Check with any of the government departments or PSUs, and you shall come across plenty of cases to validate the above.

Surya

Hi,

SUBSISTENCE ALLOWANCE DURING SUSPENSION PENDING ENQUIRY:

Where on a complaint of misconduct against a workman, disciplinary proceedings against him are contemplated or are pending, or where a case against him in respect of any criminal offense is under investigation or trial and the employer is satisfied that it is necessary or desirable to place the workman under suspension, he may do so by serving the workman with an order in writing to that effect. Such an order shall take effect immediately upon delivery to the workman. It shall be accompanied by a charge sheet setting out in detail the reasons for such suspension, and the workman shall be given an opportunity to defend himself.

A workman who is placed under suspension under paragraph (I) shall, during the period of such suspension, be paid a subsistence allowance at the following rates, namely:

Where the enquiry contemplated or pending is departmental, the subsistence allowance shall, for the first ninety days from the date of suspension, be equal to one-half of the basic wages, dearness allowance, and other compensatory allowances to which the workman would have been entitled if he were on leave with wages. If the departmental enquiry gets prolonged and the workman continues to be under suspension for a period exceeding ninety days, the subsistence allowance shall, for such period, be equal to three fourths of each basic wage, dearness allowance, and other compensatory allowances.

Provided that where such an enquiry is prolonged beyond a period of ninety days for reasons directly attributable to the workman, the subsistence allowance shall, for the period exceeding ninety days, be reduced to one-fourth of such basic wages, dearness allowance, and other compensatory allowances.

Where the enquiry is by an outside agency or, as the case may be, where criminal proceedings against the workman are under investigation or trial, the subsistence allowance shall, for the first one hundred and eighty days from the date of suspension, be equal to one-half of his basic wages, dearness allowance, and other compensatory allowances to which the workman would have been entitled if he were on leave. If such an enquiry or criminal proceedings get prolonged and the workman continues to be under suspension for a period exceeding one hundred and eighty days, the subsistence allowance shall, for such period, be equal to three fourths of such wages.

Dear Narasingh,

My doubt was not on the rules of SA; rather, it was "whether SA should be based on attendance or if it should be a fixed amount regardless of actual reporting." Please appraise the exact rules, if any.

Regards,
srp

Dear SRP,

Please go through the below section:

10A. PAYMENT OF SUBSISTENCE ALLOWANCE. - (1) Where any workman is suspended by the employer pending investigation or inquiry into complaints or charges of misconduct against him, the employer shall pay to such workman subsistence allowance - (a) at the rate of fifty per cent of the wages which the workman was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension; and

(b) at the rate of seventy-five per cent of such wages for the remaining period of suspension if the delay in the completion of disciplinary proceedings against such workman is not directly attributable to the conduct of such workman.

(2) If any dispute arises regarding the subsistence allowance payable to a workman under sub-section (1), the workman or the employer concerned may refer the dispute to the Labour Court, constituted under the Industrial Disputes Act, 1947 (14 of 1947), within the local limits of whose jurisdiction the industrial establishment wherein such workman is employed is situated, and the Labour Court to which the dispute is so referred shall, after giving the parties an opportunity of being heard, decide the dispute, and such decision shall be final and binding on the parties.

(3) Notwithstanding anything contained in the foregoing provisions of this section, where provisions relating to the payment of subsistence allowance under any other law for the time being in force in any State are more beneficial than the provisions of this section, the provisions of such other law shall be applicable to the payment of subsistence allowance in that State.

If it is mentioned in the certified Standing Order of your company that a suspended employee will have to report for his attendance at the factory gate, then you can pay his subsistence allowance on the days, and if it is not there, then you have to pay 50% SA whether his physical attendance is there or not.

Regards

My employer, a public sector insurance company, is paying me less than one third of my Gross pay. They first divide the pay by half, then make regular deductions such as PF and Housing Loan. I have complained about this matter to the labor commissioner, who has issued a notice.

Hi all,

I am going through the comments from the last few days. However, I have one query regarding the components of subsistence allowance. I need to know whether besides Basic and DA, other allowances can be taken into consideration for calculating subsistence allowance.

Thanks,
Abhay

Sir,

As per SA rules, for the first 90 days, it is 50%, for the next 90 days, it is 75%. However, after 180 days, what percentage of SA should be paid?

Bhushan Gupta

I have a doubt regarding the payment of subsistence allowance if there is a revision in the long-term wage settlement during the proceedings. Will the person be eligible for subsistence allowance as per the old settlement or the new one? If anyone could cite cases to back up the information, it would be a great help.

Thanks,
Gautam