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Dear All....
I am working with Start up company. I am only HR in my organisation and there is only 7 people in team. Company is Structure Design consultant. My query is company want give some extra allowances to our employee who are working at client location in other state. Client has arrange accommodation for our employee but food and traveling expenses we bear. For this these employee submit their expenses details and bill to company. We do not want to continue with this procedure. We want to provide them a X no of amount in each month with their salary. And employer want to include this in salary slip.But it will be only for few months till they working with client. But these expanses. And if we include it in their salary as allowances what will be the statutory effect, from business point of view and from HR point of view.?
These allowances shall be given till they are working at clients location.
Kindly guild to clear these thing.
Regards
ND

From India, Mumbai
any thing that comes under the purview of salary will attract statutory complainces, it is better pay under the head other than any of the salary heads, for ex: company expenses.
From India, Kochi
Mahr
477

You can pay them X amount based on which city they are deputed. For example, if they are deputed in metros like Mumbai, Bangalore, etc. then the living expense would be slightly higher than other cities. Fix up a cap based on the discretion of the management and also tagged to the band, if you have, and proceed that as a policy. You have mentioned about travel, the travel cost from the base location to the clients location should not be added along with this per-diem. The local travel in the deputed city along with the food should be the main purpose of per-diem.
You can also add one leave for a month in their leave balance, when they are deputed in the client's place. Also if the employee is deputed in the client's place for a long time, then you can pay them off to visit their family once in 2 months. This will kinda work as a motivational strategy.

From India, Bangalore
The best option may be Sodexo or other Meal Passes for Food allowances. Travel Expenses can be Reimbursement Basis or you can give Prepaid Petrol Cards. I prefer not to include both in payslip.
From India, Chennai
You can add city allowance in payslip or out of pocket reimbursement for such employee if need arise
From India, Ahmadabad
If You pay along with salary in the head of allowance only, it will attract ESI / PT / TDS deduction contribution It is better to pay as meal expenses / SODEXO as suggested.
From India
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