Dear Professionals, When an employee is paid subsistence allowance during the period of suspension pending enquiry, what are the deductions we need to proceed with - both ESI & PF or only ESI. Pls clarify.
From India, Madras

There are two view points. One is that Subsistence allowance is not wages/salaries hence PF is not to be deducted.

Supreme Court upheld that subsistence allowance forms part of wages hence ESI is deductable.

Please also view the following link, so that you will have a better understanding ld,made%20on%20the%20subsistence%20allowance.

From India, Aizawl

Dear sir, Thank you so much for your clear explanation. Regards, Madhan S
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.

Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR

All Copyright And Trademarks in Posts Held By Respective Owners.