Suspension Allowance Deductions: Do We Deduct Both ESI and PF or Just ESI?

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.

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.