Subsistence allowance, Industrial Employment (Standing Orders) Act 1946 Section 10A

Section 10A in The Industrial Employment (Standing Orders) Act, 1946 

[10A. Payment of subsistence allowance.— 

(1) Where any workmen is suspended by the employer pending investigation or inquiry into complaints or charges of misconduct against him, the employer shall pay to such workman subsistence allowance— (a) at the rate of fifty per cent. of the wages which the workman was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension; and (b) at the rate of seventy-five per cent. of such wages for the remaining period of suspension if the delay in the completion of disciplinary proceedings against such workman is not directly attributable to the conduct of such workman. 

(2) If any dispute arises regarding the subsistence allowance payable to a workman under sub-section (1) the workman or the employer concerned may refer the dispute to the Labour Court, constituted under the Industrial Disputes Act, 1947 (14 of 1947), within the local limits of whose jurisdiction the industrial establishment wherein such workman is employed is situate and the Labour Court to which the dispute is so referred shall, after giving the parties an opportunity of being heard, decide the dispute and such decision shall be final and binding on the parties. 

(3) Notwithstanding anything contained in the foregoing provisions of this section, where provisions relating to payment of subsistence allowance under any other law for the time being in force in any State are more beneficial than the provisions of this section, the provisions of such other law shall be applicable to the payment of subsistence allowance in that State.] 

1.Payment of Subsistence Allowance : 

1.1 He is entitled to subsistence allowance @ 50% of Basic Pay which he was entitled to immediate preceding the date of such suspension for first six months. Thereafter, it may be enhanced to 75%, if the delay is not directly attributable to the conduct of the suspended employee. However, it may be reduced to 25% of Basic Pay if the delay is prolonged due to the reasons directly attributable to the suspended employee. 

1.2 He is required to produce a certificate to the effect that he has not engaged himself in any other employment(s) such as business, trade, profession, vocation, etc., during the period of suspension and is further subject to review as provided in the Company’s Rules. 

2. Payment of Dearness Allowance (DA) : 

2.1 He is They are entitled to draw DA on the basis of subsistence allowance paid to him during the period of suspension. 

3. Payment of City Compensatory Allowance (CCA) : 

 3.1 He is entitled to draw CCA from the date from which he has been paid subsistence allowance at the same rate as he was drawing immediately prior to suspension. 

4. Payment of HRA & Rent for Self Leased/ Leased Accommodation 

4.1 He is entitled to HRA/Lease Rent under self leased/leased accommodation from the date from which he has been paid subsistence allowance and the quantum would be the same as drawing immediately before suspension