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
Posted 17th September 2009 From India , Madras


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.
Posted 28th March 2013 From India , Nagpur
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.
Posted 20th July 2013 From United States, Huntsville

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?
This
Posted 11th September 2013 From India , Pune
Subsistence allowance will attract ESI contribution. The Supreme Court has also held in the case of Regional Director, ESIC Vs. M/s. Popular Automobiles that subsistence allowance is wages and contribution is payable under Sec 2 (22) on the said amount. However, the PF organisation has a different view in this regard and has issued circular that Subsistence allowance does not form part of wages and no contribution shall be deducted and contributed on it.

Deduction of LIC premium and other deductions like deduction of loans given to employees being based on express or implied contract with the employee concerned, the same may be effected as per the terms.

Continuity of service will depend on the final verdict. If exonerated, naturally, the period of suspension will be counted as period worked and service counted for continuity of service and on the other hand, if discharged from service the period of service will not be counted as service period.

Madhu.T.K
Posted 20th November 2015 From India , Kannur



 
 
 
 







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