Subsistence Allowance & Suspension

The Supreme Court has ruled that a government employee under suspension is not entitled to subsistence allowance on the basis of a revised pay scale if the disciplinary action against him or her has been taken before the revision.

A bench of Justices R V Raveendran and K S Radhakrishnan in a judgement said the suspended employee is entitled to subsistence allowance on the basis of a revised pay scale if the suspension had taken after the revision.


Interpreting rule Note 3 to Rule 7 of the Revised Pay Rules and FR 53(1)(ii)(a) and Office Memorandum dated 27th August, 1958 of the Union of India, the apex court said the rule is clear that if the revision of pay takes effect from a date prior to the date of suspension of a government servant then he/she would be entitled to benefit of increment in pay and in the subsistence allowance for the period of suspension.

"But if the revision of scale of pay takes effect from a date falling within the period of suspension then the benefit of revision of pay and the subsistence allowances will accrue to him only after reinstatement depending on the fact whether the period of suspension is treated as duty or not," Justice Radhakrishnan writing the judgement said.

The apex court passed the judgement while upholding an appeal filed by the Centre challenging the directions passed by the Central Administrative Tribunal and the Delhi High Court to pay subsistence allowance to R K Chopa, a suspended employee of the Ministry of Commerce and Industries.