How Do Night Shift, Transport, and Attendance Allowances Work in a New BPO?

Hi Everyone!!

I am Siddharth, working as an HR in an international BPO. This organization just started like 2 months back. Now we are planning to give extra allowances apart from the salary to our employees.

1. Night shift allowance - As it's an international call center, people will be working in an evening shift as well as in the night shift. So we are planning to give a night shift allowance to people working in night shifts.

2. Transport allowance - Employees who don't take the company's transport facility will get some extra money as a transport allowance.

3. Attendance allowance - This is basically to motivate employees to come to work every day and to work extra.

Now, I am trying to figure out how exactly all these allowances work... Please help me out, guys.

I would suggest implementing the following allowances for the employees:

Night shift allowance on a per-hour basis. Please do not compel them to stay back for long hours. You can offer them a rate of 150/- per hour.

Transportation allowance on a per-day basis, i.e., Rs 100/- per day.

Attendance allowance would be provided on a quarterly basis. Employees will receive a bonus of 1000/- for being present for 120 days.

Night shift allowance: People need to be hired separately for the night shift, and their salaries must be adjusted to be motivating. Revenue earned during the day compared to the night is higher, and employees need to be compensated.

Transport allowance: If candidates travel for 1 or 2 days, then payment per kilometer needs to be provided. However, for the full month, if an employee comes on their own, a fixed monthly rate should be set, around Rs. 1000 per month. If there is a cab facility available, do not provide money to those employees who can use the cab.

Attendance allowance: Provide a bonus of Rs. 1000 for employees who come to work on a daily basis (excluding weekly leaves provided by the company).

I could help you understand how things are generally done.

Night Shift Allowance

For night shift allowance for people who work during the night, a stipend can be included in their salary depending on the time they work. For example, if you set a night shift allowance for a person working until 11 or 12 at night at Rs 3000, then a person who is working the entire night and goes home sometime in the morning could have an allowance of around Rs 4000 or Rs 4500. This is just an example; you can set figures depending on the capability of the company. Alternatively, you can fix an amount for different timings. For instance, people logging off from 10 pm to 12 am could receive Rs 75 per day, and from 12 am to 3 am could be Rs 100 per day, and so on. In this system, the employee can be paid only for the days they are present in the organization (number of working days), thus making this benefit apart from their CTC.

Transport Allowance

For transport allowance, the typical practice is to assign an amount, e.g., Rs 800 per month. If the employee is availing of transport provided by the company, the amount becomes taxable. If the employee is not using the company-provided transport, this amount is non-taxable.

Attendance Allowance

Finally, attendance allowance can be set according to percentages like 85% to 100% for a stipulated amount, 70% to 80% for another amount, and anything below that would be nil.

Just to let you know, this is not my own idea; this is how things are generally done. I thought it would help to inform you.

Hope this helps.

All the best.