How Should We Charge Employees for Pick and Drop Services? Seeking Your Advice!

Hi all,

Please help me in clearing my concept relating to the pick and drop policy. We have been providing the pick and drop facility to our employees. Now, we need to add a few clauses to it.

Would it be acceptable to charge employees a monthly amount for utilizing this facility? If so, how and on what basis should it be done?

I have learned that most companies charge a nominal amount to the employees. What is the main criterion for determining the charges, e.g., based on kilometers, etc.?

I need your advice. Please help.

Regards,
Hitesh

Well, it's an organization's prerogative. It could vary between 10% to 30% of the total cost. My organization provides it for free. Some companies charge around 1000 to 2000 per month from the employee, or else they add this amount to their Gross Salary or CTC. Your company needs to make a decision on how much they want to charge. In that case, you need to freeze the conveyance allowance of Rs. 800 per month, which is non-taxable. Up to this limit. I hope I am clear.