Petrol Reimbursement Dilemma: Should We Set a Maximum Limit Per Kilometer?

Dear All, In our company, we are providing petrol reimbursement of Rs. 2 per kilometer. Please advise whether there should be any maximum limit regarding the amount or fixed kilometers. If yes, then please advise what the amount should be. Please advise me ASAP as I require the details urgently.

Thanks in advance.

Yes, it's up to management to decide on the allowance, but it can be fixed according to the grade. In our organization, we follow a structure where for the executive level, it's around Rs 3000 per month, and it increases as per the grade. It's important to scrutinize the current market situations and then determine the appropriate allowance.

Regards,
Rajeshwari
HR Executive

The limit can be decided by the management. However, Rs. 2 per km for a 4-wheeler seems way too low; even for a 2-wheeler, it is low. The ideal thumb rule is to base the 4-wheeler reimbursement per km on the per km rate of autorickshaws in your city/state/nearest state.