Is a Suspended Employee Earning Over Rs.1 Lakh Entitled to Subsistence Allowance?

An employee working in a private educational institute and drawing a wage of Rs.1 lakh or more per month was suspended for misappropriation of funds. My doubt is whether he is entitled to a subsistence allowance. Is there any wage limit for the applicability of the provision for payment of subsistence allowance to a suspended employee.

Suspension of an employee

Suspension of an employee is an act by the employer to prevent the employee from attending their duties by keeping the contract of employment under suspended animation. This is done as a measure of punishment against certain proven misconduct or in contemplation of any disciplinary action against the employee for serious or grave misconduct, and not as a termination. In the absence of any such provision in the contract of employment or the Service Regulations, if the employer places an employee under suspension pending any disciplinary action, they can do so subject to the payment of full salary for the entire period of suspension.

Payment of subsistence allowance

Since the post alleges grave misconduct of embezzlement of funds against an employee with a monthly salary of Rs. One lakh, it is certain that he would be in a managerial cadre. Therefore, the payment of subsistence allowance is strictly subject to his contract of employment or service regulations, if any, applicable to his cadre.