Subsistence Allowance - Deductions
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ganesanvenki Started The Discussion:
Dear Friends,
I have suspended, pending enquiry 2 employees for their prolonging habitual absenteeism.
In this connection i have the following doubts that can be clarified please.

1) Can the Subsistence allowance be treated as wages? if so is it be eligible for the deduction of PF,ESI?
2) From the payable subsistence allowance we can deduct the outstanding salary loan (EMI) given by the company to the suspended employee, LIC Premium under SSS Schme?
3) Will the employee be treated as continued employee during the suspension period?
4) Suspension Period, pending enquiry and subsistence allowance can be taken in to account for the calculation of Earned Leave wages, Gratuity, bonus?
5) For the 50% (during the 1st 90 days) Subsistence allowance calculation we should take only Basic+D.A or the full gross salary?

regards

V Ganesan

Quote:
Originally Posted by K C S Kutty View Post
Dear

My friend who is an expert enquiry officer is contacted and he is now busy and cannot take up any assignment for next 3 months. You may engage a Lawyer from nearby area so that it can be quickly completed and report given.

But once again I request you kindly to talk to them and counsel them. conduct enquiry and based on the enquiry findings, give them minor punishment and instruct them to improve. Alternatively, you may convince them to give resignation (after enquiry) and based on the resignation, relieve them with benefits so that no legal complications will come up later. Dismissal/ discharge will invite litigations as it is an industrial dispute under Section 2-A of the ID Act. (And the employee dismissed for a misconduct of absenteeism will get an Award from Labour Court for Reinstatement, with back wages and continuity in service. Convince your Management. - Choose your way - Industrial peace or industrial unrest. There is no legal remedy for every problem.

Coimbatore Pricol incident should be eye opener to everyone who deal with I.R.

Best Wishes,

KCS Kutty

Generally the absenteeism is associated with festivals and or some or the other excuse of ailment. In case of festivals one has to be very careful and it takes planning to control the absentee in this period. Even otherwise theabsentee is a problem faced in more or less same degree throughout India.
Hi i have doubt for how to calculation (deduction) pf % amount of employees salary, Could you plz clear to me and what is employee contribution and employer contribution.

Dear Frind,

Subisistance allowance usually paid for keeping delinquent woker alive.It can not be termed as wages.SA is as per law defined in model standing orders only.If you have your certified standing order then you should have add in it.Some states like Kerala have it\'s own rule o on this.Any how below are the answer of your query.

1) Can the Subsistence allowance be treated as wages? if so is it be eligible for the deduction of PF,ESI? NO this can not be treates as wages.No PF Will be deduct .But for ESIC you have to deduct the contribution so as to keep him and his family availing ESIC benefits.
2) From the payable subsistence allowance we can deduct the outstanding salary loan (EMI) given by the company to the suspended employee, LIC Premium under SSS Schme?
No because payment of wages is not applicable in such case,You can deduct LIC premium as it is life insurance like ESIC.
3) Will the employee be treated as continued employee during the suspension period?
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