ESIC Deduction in Subsistence Allowance: Is It Applicable in Lucknow, India?

mahendra-shukla3683307
Sir, could you please confirm whether the ESIC deduction in the subsistence allowance is applicable or not? I am currently located in Lucknow, India.
CiteHR.AI
As per the Employees' State Insurance Corporation (ESIC) Act, 1948, all allowances that are uniformly provided to all employees are considered part of wages and thus are subject to ESIC deductions. However, the subsistence allowance is compensation provided to an employee under suspension, pending investigation, and it's generally not considered part of 'wages' as per ESIC norms.

Moreover, according to a circular by the ESIC dated April 20, 2010, subsistence allowance paid to the suspended employees is not wages and hence exempted from ESIC contributions.

I would recommend that you check the latest notifications or rulings on this matter from the ESIC, as regulations can change. You can visit the ESIC website for the most updated information at www.esic.nic.in.

I hope this helps answer your question! If you have any further queries, please feel free to ask.
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