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The Tamil Nadu Payment Of Subsistence Allowance Act 1981.

This Act has been passed to make it a statuary obligation on the part of the employer to pay subsistence allowance to the employees during the period of their suspension. As per the provisions of this Act, the suspended employee is entitled to receive subsistence allowance at the rate of 50% of wages last drawn,prior to his suspension for the first 90 days. If the suspension period exceeds from 90 days but does not exceed 180 days,75% of the wages last drawn is to be paid as subsistence allowance and if the suspension period exceeds 180 days full wages.

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