Dear All

I need a small clarification, In our company, Travelling Allowance is a part of Monthly Gross, but in case if anybody takes leave, Company pay all the components but only transport allowance is deducted for the leave taken,
If Transport Allowance is part of our CTC, whether the company can deduct this amount.
This practice is followed for a long time under the instruction of our MD and nobody has objected.

I need to know whether this practice is right, if not how should I explain the Management and try to rectify it,

From India, Mumbai
Seasoned Ir Professional
Manager Hr & Admin


Travelling allowance/ conveyance allowance/ transport allowance is an allowance which is available to an employee to reach the office and back home. Hence if it is not paid for the days the employee remained on leave, whether paid leave or unpaid leave, there is no illegality. But very often this allowance is a lump sum amount per month and as such it will be payable for paid leave days also. Still you cannot take it as a right. CTC has no legal relevance. It shall include all costs of keeping an employee in service. Therefore, it shall be an amount that the company will cost if you are present on all the days.
From India, Kannur

If You Are Knowledgeable About Any Fact, Resource or Experience Related to This Topic and Want to Be Part of Such Discussions in Future - Please Register and Log In to Cite Community.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2023 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server