Sending Employees Abroad: How Should We Handle Allowances and Salary Structure?

Hi Neeraj, We are a 15+ employee company working with clients in the Middle East. We will be sending employees to the client side in the Middle East.

Queries Regarding Employee Allowances and CTC

1. I want to know the current per-day allowances paid to Indian employees visiting other countries in US dollars.

2. In our organization, the salary structure we are following is INR Salary + onsite allowances as gross CTC. Are we doing it right? Please suggest the correct way to offer the gross CTC.

3. In case an employee comes back to India for some time, what would be the CTC of the employee? Converting onsite allowances into INR would result in a huge amount to be paid. Please suggest.

Thank you.

Best regards, Neeraj

Per Diem Allowances

Per diem allowances depend on the type of business and the skill sets of employees who are sent abroad. There is no standard available.

Thank you for the information. If you could provide details regarding the daily allowances offered by an IT company for junior, middle, senior, and management-level employees, it would be greatly appreciated.

I have the same type of issue. I went twice (4 months in the Middle East) on short-term assignments. They paid 490 Kuwaiti Dinar as an allowance per month, in addition to my Indian salary. This money was converted into INR and added to my Form 16. What should I do? How can I file my taxes?

Please suggest to me. Let me know if you are aware of any auditor who can handle such a scenario.

My email: [Email Removed For Privacy Reasons]

Regards,
Palanivel

Per diem allowances earned on foreign soil are not taxable. Check with your auditor.

Regards,
Pon