Dear Naveen,
If we understand the real meaning of the term "suspension" with its import in employment parlance, we will be sure that it is the consequence of the interim decision of an employer to temporarily debar an employee from attending his office and performing his functions in the establishment on the ground of contemplation of an enquiry into grave charges against him, its pendency at any stage, or a complaint against him of any criminal offence under investigation or trial or pending disposal. However, the contract of employment between the employer and the suspended employee is still in subsistence, albeit in a state of suspended animation.
As no work is done by the employee during his suspension, the question of wages or salary for that period does not arise. However, suspension, being a discretionary act of the employer stemming from his powers of discipline and control based on equity and justice, requires him to pay some money to the employee to enable him to subsist and face the disciplinary proceeding initiated against him. This payment is referred to as "Subsistence Allowance" as mandated by Sec.10-A of the Industrial Establishments (Standing Orders) Act, 1946, or any other special law in this regard, or the Service Regulations of the establishment depending upon the post held by the suspended employee, and is paid to him at the rates specified therein during the entire period of suspension.