Understanding Conveyance vs. Conveyance Allowance: What's the Difference for Employees?

Dear sir, please explain the difference between conveyance and conveyance allowance if this is paid to an employee.

Conveyance refers to the means of transport, like a vehicle. Conveyance allowance refers to the payment made by a company to an employee towards expenses incurred by them on travel while on duty or to and from the workplace to home.

Regards,
B. Saikumar
HR and Labour Law Advisor
Mumbai

Understanding Conveyance and Conveyance Allowance

Conveyance is the act of conveying something, especially the transportation or transmission of a vehicle from one place to another. Conveyance allowance is the expenses provided to employees for a particular distance, considered to be included in their pay.

Thank you.
Regards.

Conveyance Allowance vs. Conveyance Expenses

Conveyance allowance is a part of the salary/CTC.

Conveyance expenses are for reimbursement but are not part of the salary/CTC.

Regards,
Pon

Mr. Sai Kumar's explanation for your query is very precise and would have given you an idea about the difference. But was this the reply or clarification you were really wanting, or did you want to know something else, like the difference between Conveyance Allowance and Conveyance Reimbursement?

Regards,
S. Dass

Mr. Pon's response is correct, but I would like to add that the "conveyance allowance," although part of the salary package/CTC, is irrespective of the expenses incurred. On the other hand, "conveyance," as mentioned, is usually a reimbursement based on actual expenses incurred in the course of performing one's official duties.

Regards,
UG

It's simple. Conveyance is the mode of commuting provided by the company for its employees to travel from the place of work to home and vice versa. Conveyance allowance is provided in lieu of conveyance, where a fixed amount is given to the employees every month based on the grade pay or the company policy.

I hope this explanation makes it clear for you.

Conveyance will be provided to you, which means the company will provide you with a vehicle for commuting from home to the office and back for duties.

Conveyance Allowance

Conveyance allowance means you will be paid an allowance for making your arrangements for commuting from home to the office and back for duties.

Dear Sir, how much can be gained from the conveyance part of a salary? It can be any limit, but tax exemption is available for Rs. 800 per month as per I.T. rules.

Regards,
Pon