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Please explain how to calculate the payment of subsistence allowance. Let's assume the Basic is 6300/-, HRA is 3000, Conveyance allowance is 1500. What should be the amount and how is it calculated?

With Regards,
Animesh Sarkar

From India, Vadodara
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As far as I think, it should be 50% separately for all heads mentioned by you. I am not being paid 50% myself as my employer, insurance company, is deducting all regular deductions from Gross pay - 50%. I have complained to the Labour Commissioner who has issued a notice.
From India, Ajmer
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We calculate Basic + DA + HRA (HRA because it is payable as per the HRA Act) for the calculation of Subsistence Allowance. Conveyance Allowance is paid for commuting to and from the place of employment. In the case of suspension (pending inquiry), the employee does not need to come to the place of employment, and hence the Conveyance Allowance is not considered in the calculation of Subsistence Allowance. The rate of Subsistence Allowance is 50% of wages for the first 90 days of suspension, 75% of wages for the next 90 days, and 100% of wages for suspension exceeding 180 days pending inquiry.

Regards,
SDP

From India, Kolhapur
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AK
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Subsistence Allowance Calculation Under the Standing Orders Act

If your establishment is covered by the Standing Orders Act, you need to pay a subsistence allowance at 50% of Basic + HRA + Conveyance allowance (if all three components of salary are paid to the employee at the time of suspension) for the first 90 days and 75% of the same for the remaining period of suspension. If standing orders are not applicable to you, the subsistence allowance has to be computed at the rates and on components of wages as prescribed under the terms of your service rules.

Regards,
B. Saikumar
Mumbai

From India, Mumbai
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