How Much Does Your Company Reimburse for Travel? Share Your Industry Rates Here

Survey on Travel Reimbursement Rates

The purpose of this post is to conduct a survey on travel reimbursement rates. Please specify the rate at which travel expenses are reimbursed in your organization. It would be helpful if you could provide the exact amount along with details about your industry.

For example:
- Rs. 3 for a bike
- Rs. 6 for a car

Industry: Healthcare/Hospital

Thank you.

In our company, management staff, at the company's discretion, may be permitted to use their personal vehicles for out-of-town business trips when the distance exceeds the 30 km limit. Such approval should be granted by the immediate reporting manager and the locational head of the division/function. For such trips, they will be reimbursed at a flat rate as follows:

- Car: Rs. 7 per km
- Motorcycle: Rs. 3 per km

Apart from the above, no other reimbursement will be made towards damages, wear and tear, etc., of the vehicle.

Regards,
Jayan

It varies from company to company. It is Rs. 8/- (4-tyred) and Rs. 6/- (2-tyred) per kilometer in our organization. I don't know the basis of such rates as I am not an HR person.

Regards,
Pon

Understanding Travel Reimbursement Rates

Assume a bike gives 40 km per liter; then at Rs. 4/-, it would work out to Rs. 160/- per liter, i.e., roughly 2.3 times the petrol price.

Assume a car gives 12 km (Santro types); then at Rs. 7/-, it would work out to Rs. 84/- per liter, about 1.2 times.

Assume a car gives 10 km (City types); then at Rs. 7/-, it works out to Rs. 70/- per liter, about 1 time.

Then you have periodic maintenance and wear and tear.

I have always wondered what logic is used to say "this is fair or this is not fair." I think the rate should be such that the employee feels that he is neither gaining nor losing anything by using his personal vehicle. The best way is to have 1.5 times as the logic with 3 categories of rates, not 2:

1) Junior level @ 1.5 times assuming a bike
2) Middle Level @ 1.5 times assuming a 4 to 5 lac car, i.e., 12 km/liter
3) Senior Level @ 1.5 times assuming an 8 to 10 lac car, i.e., 10 km/liter

Don't bother about diesel or petrol because diesel cars have more maintenance. Be fair to your employees, and they will be fair to you.

In our organization, we pay as per the details given below:

- ₹2.5/KM for a bike
- ₹5.00/KM for a Front Line Sales Manager
- ₹6.5/KM for up to 1200CC car
- ₹8.5/KM for above 1200CC

Regards

I am sure the rates you have mentioned here are now obsolete. Kindly update the latest information for FY 2013-14 as we can see a hike in fuel prices. Your prompt response is highly appreciated.

Regards