Is there any difference between Allowance and benefits? - CiteHR
Ed Llarena, Jr.
Owner/ Managing Partner
Pon1965
Construction
+1 Other

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Dear All, Is there any difference between Allowance and benefits? If yes, please highlight us on the difference. Regards, Jose
Allowances are part of salary. e.g. conveyance allowance, education allowance, medical allowance, spl. allowance, hardship allowance, etc.
Benefits are indirect e.g. subsidized loan, canteen, vehicle, medical insurance, other facilities, etc.
Pon

Hi! Generally, in compensation lingo, the term "benefits" include allowances. And, "allowances" can refer to both "cash and non-cash".
Benefits would generally include all other things included in a "compensation package", which generally mean: the basic salary, plus allowances, and other mandated or voluntary benefits & perks (housing, transportation, car, gas, health & life insurance, etc.).
The cash allowances are those that are included in the so-called "gross salary" (vs the term "basic salary").
Hope this helps.
Best regards.
Ed Llarena, Jr.

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