Calculation of subsistence allowance

, if an employee is under suspension, 50% of his gross salary is to be paid, this is also implemented by State and Central Governments in India, If there is a Policy in your organisation and inserted in a employees Standing orders and got certified by the Commissioner of Labour with the will of the employees and the union, it can be operative, but to my knowledge no commissioner of labour will certify to 1/4th salary s subsistence allowance.

Thank you very much for the reply.

Most of the States in the country have framed Act and Rules for payment of Subsistence Allowance and same can be claimed under that Act instead.

Usually, an employee under suspension receives 50% of salary for the first 03 months and if the suspension extends beyond 03 months then he is entitled to receive 75% of the salary. This Act is usually applicable for all kinds of Industry/ establishment where certain stipulated no. of workmen/ employee works.

The subsistence allowance will be paid to the suspended employee @50% of the pay and compensatory allowances for the first three months. 

Based the rules/regulations of the establishment/organisation, it will be enhanced to 75% (if the management is responsible for the prolongation of the case) and will be reduced to 25% (if the employee is found to be responsible for prolongation of the case).  It all depends upon the rules framed in that company.