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When an employee is under suspension, will the company pay the PF contribution or not? What are the rules and regulations regarding suspension? Can a suspended employee receive their salary or not? Please provide the information.

Regards,
S. Srinivas

From India, Hyderabad
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During the period of suspension, an employee is eligible to receive a subsistence allowance at the rate of 50% of the salary (basic + DA). Depending on state rules, the rate of subsistence allowance may vary. Initially, the rate is set at 50% for the first 90 days of suspension. If the suspension extends beyond 90 days, the subsistence wages increase to 75% for the remaining duration.

There are two approaches to deducting PF from the subsistence allowances. The first method is to deduct PF as if it were regular salary paid. The alternative is not to deduct it temporarily and instead collect it from the arrears of salary paid once the suspension is lifted, and the employee is reinstated.

Regards, Madhu.T.K

From India, Kannur
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Dear Shri Madhu. T. K, if the employer proves that the suspended employee is guilty of the charges leveled against him and then terminates him from employment, will the employer be required to pay any wages for the period of suspension of the employee? Please inform.

Regards,
Simhachalam

From India, Mumbai
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If the suspended employee is discharged from service, no more payment is to be made apart from the subsistence pay already paid. On the other hand, if exonerated of charges, he should be reinstated, and full wages should be paid with retrospective effect from the date of suspension. While doing so, the subsistence allowance already paid shall be deducted from the wages payable.

Regards,
Madhu.T.K

From India, Kannur
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Dear Shri Madhukar, Thank you. In fact, after posting this question, I found that you had already given similar clarification to one of our friends' question. Regards, Simhachalam
From India, Mumbai
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My Dad's Worked as a Tamilnadu State Government Employee, holding the designation of Village Administrative Officer. His retirement date was 30-06-2008. On this date, he was suspended due to an issue with the charge sheet (17B & 17E). From 30-06-2008 until now, he has only received 50% of his salary. Can anyone help regarding Tamilnadu Act 53(1A) which states that for the first 6 months, 50% of the salary is provided, and for the remaining days, 75% subsidy allowance is provided? This would be applicable to my father. Please assist me if possible.

(P.S) My father's retirement date was 30-06-2008, and since then, he has only been receiving 50% of his salary.

From India, Madras
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