Subsistence allowance

Subsistence allowance is the pay a suspended government servant draws under FR 53: half-pay leave salary plus DA and HRA, reviewed after three months.

Subsistence allowance is the amount a central government employee under suspension draws in place of pay, under Fundamental Rule 53. A suspended servant is not dismissed and the employment is not ended; it is only held in abeyance while a disciplinary case or investigation runs its course. Because the servant is barred from working, the rules provide a reduced payment to live on, and that payment is the subsistence allowance. Its purpose, as the courts have put it, is to provide a livelihood to an employee whose relationship with the government is suspended but not severed.

The allowance is deliberately less than full pay, but it is not a token: for the first three months it is roughly half the pay, plus dearness allowance and the house rent allowance the servant was drawing before suspension. After three months it must be reviewed, and it can go up or down depending on who is responsible for the delay. This article sets out the rate for the first three months, the review after three months, the treatment of dearness and compensatory allowances, the non-employment certificate that conditions payment, the deductions that can be made, what happens to the pay for the suspension period on reinstatement , a worked example, and the remedy if the allowance is not paid.

What subsistence allowance is

Under Fundamental Rule 53, a government servant placed under suspension, or deemed to be under suspension, is not paid pay. Instead the servant is allowed a subsistence allowance equal to the leave salary they would have drawn had they been on leave on half pay (or half average pay), together with the dearness allowance admissible on that leave salary. Because half-pay leave salary is half of the pay, the subsistence allowance for the first period works out to about 50 per cent of the basic pay, plus dearness allowance on that half.

The rule applies to a formal suspension ordered under the CCS (Classification, Control and Appeal) Rules, 1965 , and to a deemed suspension, for example where a servant is detained in custody. It is the pay side of suspension; the disciplinary side is dealt with in the CCS (CCA) Rules and, where a major penalty follows, in dismissal and removal from service .

The rate for the first three months

For the first three months of suspension, the subsistence allowance is:

  • leave salary on half pay, about 50 per cent of the basic pay; plus
  • dearness allowance on that amount; plus
  • the house rent allowance and other compensatory allowances the servant was drawing before suspension, on the pre-suspension pay, subject to the usual conditions for each.

The compensatory allowances are not cut to half; they continue on the pre-suspension basis, so long as their own conditions are met, for example that the servant continues to pay rent for the house rent allowance and does not occupy government accommodation. It is only the pay element that is halved into the subsistence figure.

The review after three months

If the suspension continues beyond three months, Fundamental Rule 53 requires the competent authority to review the subsistence allowance, and the review can move it in either direction, by up to 50 per cent of the amount admissible for the first three months:

  • An increase of up to 50 per cent, taking the allowance to about 75 per cent of pay, where the suspension is prolonged for reasons not directly attributable to the government servant, for example delay on the part of the department.
  • A decrease of up to 50 per cent, taking the allowance down to about 25 per cent of pay, where the suspension is prolonged for reasons directly attributable to the servant, for example non-cooperation with or deliberate delay of the inquiry.

The review is mandatory, but an increase is not automatic. The authority may raise the allowance, cut it, or leave it unchanged at the half-pay level, according to the facts. A failure to review after three months can itself be challenged, and an employee can approach the Central Administrative Tribunal to compel a review or the timely release of the allowance.

Dearness and compensatory allowances

Two points on the allowances that ride on top of the subsistence amount:

  • Dearness allowance is calculated on the subsistence allowance from time to time, so if the subsistence figure is increased or decreased on review, the dearness allowance is recomputed on the revised figure.
  • House rent allowance and compensatory allowances are admissible on the pay the servant was drawing on the date of suspension, subject to the conditions attached to each. A servant in a government quarter cannot draw house rent allowance, and a compensatory allowance continues only while its underlying condition is met.

The non-employment certificate

Payment of the subsistence allowance is conditional. No payment is made unless the government servant furnishes a certificate that they are not engaged in any other employment, business, profession, or vocation. In practice departments require this certificate with each monthly bill. The condition follows from the purpose of the allowance: it supports a servant who, though suspended, is not free to earn elsewhere, so a servant who does earn elsewhere is not entitled to it for that period.

Deductions from subsistence allowance

Subsistence allowance is treated broadly like pay for deductions, but with limits. Compulsory deductions such as income tax (if the amount is taxable), the licence fee for a government quarter, and the recovery of loans and advances at a rate fixed by the authority are made from it. Certain deductions are made only with the servant’s consent, and some, such as the recovery of a government loss, are not made from the subsistence allowance at all. The licence fee for a government quarter, for instance, continues to be recovered, now from the subsistence allowance rather than from full pay.

What happens on reinstatement

When the suspension ends and the servant is reinstated , the pay for the suspension period is regulated under Fundamental Rules 54 and 54-B, and the outcome turns on the result of the case:

  • Full exoneration on the merits. The suspension period is treated as duty, and the servant is paid full pay and allowances for it, less the subsistence allowance already drawn.
  • Not exonerated, or reinstated on a technical ground. Where the servant is not exonerated on the merits, or a dismissal is set aside only for non-compliance with Article 311 , the pay for the period may be limited to the subsistence allowance already paid, and the competent authority decides whether the period counts as duty.

In every case, the subsistence allowance already paid is never recovered, and any payment on reinstatement is subject to adjustment for anything the servant earned through other employment during the suspension.

A worked example

Take a suspended employee with a basic pay of Rs. 60,000.

  • For the first three months, the subsistence allowance is half of Rs. 60,000, that is Rs. 30,000, plus dearness allowance at the applicable rate on Rs. 30,000, plus the house rent allowance the employee was drawing before suspension.
  • After three months, if the suspension drags on because the department has not completed the inquiry, the authority may raise the allowance by up to 50 per cent of Rs. 30,000, that is by up to Rs. 15,000, to as much as Rs. 45,000 (about 75 per cent of pay), with dearness allowance recomputed on the higher figure.
  • If instead the delay is the employee’s own doing, the authority may cut the allowance by up to Rs. 15,000, to as little as Rs. 15,000 (about 25 per cent of pay), with dearness allowance on the lower figure.

If the employee is later exonerated, the whole suspension period is treated as duty and full pay is paid for it, less the subsistence allowance already drawn.

If the allowance is not paid

Prompt payment of subsistence allowance is a duty, not a favour, and the courts have repeatedly said that a suspended servant must receive it without delay and regularly, subject only to the certificate. If the allowance is not paid, or the mandatory three-month review is not done, the servant can represent to the competent authority and, failing relief, approach the Central Administrative Tribunal . Non-payment of subsistence allowance has been held to vitiate disciplinary proceedings in some cases, because it can leave the servant unable to defend the inquiry.

Frequently Asked Questions (FAQs)

What is subsistence allowance?
Subsistence allowance is the amount a central government employee under suspension draws in place of pay, under Fundamental Rule 53. For the first three months it equals the leave salary the servant would have drawn on half pay, about 50 per cent of the pay, plus dearness allowance on that amount and the house rent and compensatory allowances admissible before suspension. It exists to provide a livelihood while the master-servant relationship is only suspended, not ended.
How much is subsistence allowance during suspension?
For the first three months it is the leave salary on half pay, roughly 50 per cent of the basic pay, plus dearness allowance on that and the pre-suspension HRA and compensatory allowances. After three months the competent authority must review it and may raise it by up to 50 per cent of the first-period amount, to about 75 per cent of pay, or cut it by up to 50 per cent, to about 25 per cent, depending on who is responsible for the delay.
When is subsistence allowance increased or decreased after three months?
If the suspension is prolonged for reasons not directly attributable to the government servant, the allowance may be increased by up to 50 per cent of the first-three-months amount. If it is prolonged for reasons directly attributable to the servant, such as delaying the inquiry, it may be decreased by up to 50 per cent. The review is mandatory, but an increase is not automatic; the allowance may also be kept unchanged.
Is a certificate needed to draw subsistence allowance?
Yes. No subsistence allowance is paid unless the government servant furnishes a certificate that they are not engaged in any other employment, business, profession, or vocation. Departments usually require this certificate with each monthly bill, because the allowance is meant to support a servant who is not working elsewhere while suspended.
Does a suspended employee get HRA and dearness allowance?
Yes. Dearness allowance is paid on the subsistence allowance amount and moves with it if the allowance is revised. The house rent allowance and other compensatory allowances continue on the basis of the pay drawn before suspension, subject to the usual conditions, for example that the servant continues to pay rent and does not occupy government accommodation. These are in addition to the half-pay subsistence amount.
What happens to the pay for the suspension period on reinstatement?
It depends on the outcome, under FR 54 and 54-B. If the servant is fully exonerated on the merits, the suspension period is treated as duty and full pay and allowances are paid, less the subsistence allowance already drawn. If the servant is not exonerated, or is reinstated only on a technical ground, the pay for the period may be limited to the subsistence allowance already paid, and the competent authority decides whether the period counts as duty. Subsistence allowance already paid is never recovered.

External references

References

  1. Fundamental Rule 53 (subsistence allowance during suspension): leave salary on half pay for the first three months plus dearness allowance on that amount, and the compensatory allowances admissible on the pay before suspension.
  2. Fundamental Rule 53(1)(ii): the review after three months, with an increase of up to 50 per cent of the first-period amount where the prolongation is not directly attributable to the servant and a decrease of up to 50 per cent where it is, and dearness allowance recomputed on the revised amount.
  3. Fundamental Rule 53: the condition that no payment is made unless the servant furnishes a certificate of not being engaged in any other employment, business, profession, or vocation.
  4. Fundamental Rules 54 and 54-B (regulation of pay and allowances and of the suspension period on reinstatement): full pay and allowances on exoneration with the period treated as duty, and pay limited to the subsistence allowance where the servant is not exonerated, with no recovery of the subsistence already paid.
  5. CCS (Classification, Control and Appeal) Rules, 1965, on suspension and deemed suspension, read with FR 53 for the pay during suspension.