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L . Sachin (service)     28 January 2011

PF deduction on Subsistance allowance

Dear Expert /Senior

 

Pls suggest, Can I deduct PF of employee who is suspend on pending enquiry? and has receiving subsistance allowances as per standing order.

 


Regards

Sachin



Learning

 1 Replies

GUDAKESH KUMAR (LAW OFFICER)     28 January 2011

the very nature of subsistance allowance is for the survival of the employee who is under suspension and is not receiving salary. No deductions are to be made from Subsistance allowance, whether it is his provident fund employee contribution or installment of any loan or advances from the employer. You may will have the opportunity to deduct the PF if he is reinstated with backwages, however if at all his services are terminated as a result of enquiry from the date of suspension, what will you do of the PF deduction as employee contribution made by yourself, will you make employer contribution to the same as if he is in service.


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