Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Deputy Manager - Hr
Hr Executive
Hr Executive

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I am working as HR Executive, and this is my first job in HR. Can any one tell me are the reimbursement are equal to variables??
In my company a CS has been joined and i am offering her 5,64,000/- CTC. After some time she is asking for mobile phone reimbursement. Is mobile phone reimbursement included in the salary slip?
Is reimbursement is the part of salary??
Plz help me..

Variables and reimbursements, both form a part of the compensation offered.
Variables are components based on certain contingencies like achieving a certain performance level.
Reimbursements are certain agreed-upon expenses which are given on production of proofs of expenditures.
What are the terms and conditions of the Offer of Appointment given to her ??
If you are still negotiating salary; in that case you can offer her Mobile bill reimbursement upto appropriate level; within the cap of her offered CTC i.e. Rs. 5.64 lacs.
You can not offer anything beyond the CTC agreed upon.
Warm regards.

Example, I am getting a telephone allowance which is part of CTC. I get tax exemption on production of bills.
I also get mobile reimbursement. The mobile is being used for official purposes. The reimbursement has limits as per cadres.

You have to check your CTC breakup on the components you have. Normally the CTC break up will have Gross salary, Flexi/re-imbursement, Employer contribution and Variable/incentives. As suggested by other, you cant include any component which will exceed the CTC. So you can rework on the CTC and include the neccessary items and issue a revised CTC workings.
Seconldly, difference between re-imbursement and variables. Reimbursement is the components exclusive given to get exempted from tax purview (Medical, Meal Vouchers, Telephone, Fuel, LTA, Gift etc) which has a limit as prescribed. Variable components in most of the cases fixed as incentive /variable pay which is relating their performance which will paid on a monthly/quaterly/half/yearly basis and this component is taxable.

Dear Jyoti Sharma,
A variable pay is an incentive payment to employees either to increase their productivity or as a reward for their contributions. Variable pay is not compulsory unless, such payment is provided for in the employment contract. Whereas, a reimbursement is to pay back or to compensate for money already spent. Such compensations are only provided if valid documents(bills, travelling tickets etc.) are presented before the employer.
In Your Case: Yes, reimbursement do form a part of C.T.C. But note that cell phone allowance is tax-free to employees who use cell phone primarily for business purpose and any private use is purely incidental. Usually companies keep it to Rs.500/- PM. So, You can add a component as "Phone Allowance" while preparing her salary slip and specify the amount under that section. Do make sure that this allowance should not cross the C.T.C that has been mutually agreed upon.
Ramya Ranjan

Dear All, Thanx for your valuable time and suggestions, these suggestion will help me.
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