Smvsiyer
Manager-hr
Dhinakaran
Dgm - Hr And Admin
Sultanmughal
Human Resource

Hi all :

Ours is a service industry at Bangalore.

We are paying a consolidated fixed amount towards conveyance every month, to the Sales and Marketing personnel, alongwith the salary - but paid separately. The voucher will indicate as reimbrusement of conveyance expenses for the month of ____.

I plan to introduce a system wherein the employee will be reimbursed per k.m for the distance travelled by him. The employee has to produce details of the places/parties visited by him and indicate the distance and also the meter reading for the distance travelled. Based on this the rimbursable amount shall be paid to him - may be weekly/fornightly.

With the introduction of this system the existing system of paying a consolidated amount per month will be taken off.

I require suggestions for - if the above is agreeable then what should be the per k.m reimbursable amount payable for 2 wheelers - mopeds and scooters/motor cycles and also for 4 wheelers - fuel efficiency cars and others.

Kindly help me to draft a suitable system.

Regards

:: Dhinakaran
18th November 2006 From India, Hyderabad
Two Wheelers - Rs. 2.50 -3.00
Car - Rs. 5.50- 6.50
But may I know whey you want to withdraw the consolidated allowance? it will be easy to administer and thus less time consuming.
Some negatives of Consolidated system
1. It will attract Income Tax
2. Even if a person is on paid leave, the allowance will be paid
Negatives of reimbursement system
1. Obtaining authorisation from superiors will be a big task.
2. Ensuring whether everyone has received will be another uphilll task.
3. Time consuming as you need to have many checkspoints in the process
Regards
Sathiyamoorthy Iyer
18th November 2006 From India, Madras
Dear Sathiya Murthy Iyer :
I intend withdrawing the consolidated amount since payment of a constant amount every month may not be considered as reimbursement.
Also, if the employees spend more than the amount, they tend to loose which in turn will make the employees to curtain their movement to the extent of the amount paid.
By the new system I envisage introducing will make the employees to be more mobile which will result in better results. Hope you agree with me.
Pls comment
Rgds
:: Dhinakaran
18th November 2006 From India, Hyderabad
Dear Dinakaran,
Thanks for the reply. Actually we were initially having the reimbursement system, as it was practically time consuming and needs lots of checks, we shifted to allownce system.
Also- this brings out some employees out of the Rs .10000/- slab for ESI. As we already have insurance scheme for all employees, this was really helpful for us..
whoever, has spent more than the eligible conveyance amount, shall be reimbursed separately, which will is very few cases for us!
You will be the better judge, the assumptions I have made may not be applicable for your type of industry...
However, thanks for sharing..
Regards
Sathiyamoorthy Iyer
Regards
Sathya
18th November 2006 From India, Madras
Dear Dinakaran,
I know it would be different for you sitting in India and planning travelling policy in terms of fuel and other items.
In my company we have formulated a separate annexure (that keeps changing time to time) that explains the all travel related items (Daily Allowance, Personal Guest Allowance (PGA), hotels, meals, fuel etc). May be you will find it helpful in designing your own.
Regards,
Sultan Mughal
Manager HR
Wazir Ali Industries Limited
Contact: +92 - 333 - 4431122
Email: sultanmughalgmail.com
sultanmughalhotmail.com
sultanmughalyahoo.com
sultantullo.com.pk
20th November 2006 From Pakistan, Karachi

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