Suspension allowance

Querist : Anonymous (Querist) 18 October 2011 This query is : Resolved
if an employee is suspended from duty, HE is liable to be paid subsistence allowance/suspension allowance on he being suspended from duty/work. he is been paid his monthly allowance through vouchers. if in a particular month his account is credited directly by salary does the employer face any problem, as the suspended employee recieves his BASIC SALARY, DA, HRA & OTHER ALLOWANCES & ALSO HIS PF IS DEDUCTED. WHAT WOULD BE THE IMPACT IN SUCH CASES

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Guest (Expert) 18 October 2011
The employer need not feel panicky on drawal of full salary instead of subsistence allowance of the suspended employee, for any month due to over sight. If the salary has not already been credited in his salary account with the bank the same may be modified to the extent admissible.

If the salary account of the suspended employee with bank has already been credited with the usual salary instead of subsistence allowance, the over paid amount cannot be recovered from the subsistence allowance. The over paid amount may be kept under suspense for the purpose of recovery from his regular salary after his suspension is revoked. Since PF can also not be recovered from the subsistence allowance, the same can also be treated as part of the overpaid amount to be adjusted later on revokation of his suspension.

prabhakar singh (Expert) 18 October 2011
I agree with opinion expressed by Dhingra ji.

Arun Kumar Bhagat (Expert) 18 October 2011
I too agree with opinion expressed by Dhingra ji.

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