A travelling allowance is a sum of money provided to an employee or officer to cover the expenses incurred while travelling for business purposes. It is usually a fixed amount or a percentage of the employee’s salary.

Eligibility:

• Employees who are required to travel for business purposes.
• Officers who travel on official duty.

Types of Travelling Allowance:

• Daily Allowance: A fixed amount for each day of travel.
• Per Diem: A fixed amount for each meal (breakfast, lunch, dinner).
• Lodging Allowance: A fixed amount for accommodation expenses.
• Transportation Allowance: A fixed amount for travel expenses, such as airfare, train fare, or car rental.
• Other Expenses: Reimbursement for other travel-related expenses, such as parking, tolls, and incidentals.

Eligible Expenses:

• Travel expenses (airfare, train fare, etc.)
• Accommodation expenses (hotel bills, etc.)
• Meal expenses (breakfast, lunch, dinner)
• Parking and tolls
• Incidentals (laundry, room service, etc.)

Rate of Allowance:

The rate of travelling allowance varies depending on the company policies, industry standards, and location. It is usually a percentage of the employee’s salary, ranging from 10% to 20%.

Approval:

Travelling allowance is typically approved by the employee’s manager or superior officer. The amount of the allowance is usually based on the employee’s position, distance travelled, and company policy.

Additional Notes:

• Travelling allowance is a taxable income for employees.
• Companies may have different policies and procedures for calculating and approving travelling allowance.
• Employees should check their company policies for specific guidelines and requirements related to travelling allowance.

Examples:

• An employee who travels for business for five days may be eligible for a daily allowance of $50.
• An officer who travels for a conference may be eligible for a lodging allowance of $100 per night.
• An employee who travels by car may be eligible for a transportation allowance of $20 per day.