Petrol & Mobile Allowance

Dear All,
1. Can I give salary on target base to Sales employee? ( which salary will be varied as per target achievement).
2. Can I mention Petrol Allowance (rather than conveyance allowance) and Mobile Allowance contents in Salary Slip?
Please guide me.
ASHAOEK
9822595497

Hello Ashaoek,
Conveyance allowance and Petrol Allowance are two different type of Allowance, you can use word Petrol Reimbursement rather than Petrol Allowance as per my opinion.
Thanking you,
Regards,
Ashish

You can give Salary on target base also, but you should keep in mind the base salary should not be below the Minimum Wage of your state. With regards to Petrol Allowance/Mobile Allowance any breakup in Salary Slip is subject to all Statutory Obligations.

Dear Ashoke,

With regard to to your first query , My answer is yes , you can give salary on target base to Sales employee but ensure that it cannot be under any circumstances less then applicable Minimum Wages in your state.

My answer to the your second query, yes you can mention Petrol Allowance (rather than conveyance allowance) and Mobile Allowance in Salary Slip but all these Allowances are subject to statuary deduction like ESI , if gross salary is within Rs.15000 per month.Besides, deduction of Professional Tax & IT is also applicable in accordance with law.

Instead of Petrol Allowance if you pay him as Conveyance Allowance the concerned employee through salary slip , he/she will get IT relief @Rs 800/ per month on which no IT is payable .

Alternatively, you may consider to pay him reimbursement of petrol and Mobile expenses by way of payment through voucher in cash in order to avoid statuary deduction from employee's salary for the benefit of the employee concerned. Of course, it depends on your company Policy.

Feel free to contact me in case of any further clarifications.

Thanks and regards,

Sibabrata Majumdar

Management Consultant -Legal & HR

Kolkata

(M): 9830023706

While considering paying petrol and mobile allowance on voucher please think of what will be the logistics issues as well as the work load on the concerned accounts departments. Further, it is difficult to put in a control and ensure that the amounts not double paid, etc.