Understanding Daily Allowance in FMCG: What Does It Cover for Sales Teams?

Understanding Daily Allowance (DA) in the FMCG Industry

In the FMCG industry, can someone please explain what all DA is offered to Sales Representatives, Territory Sales Incharges, and Area Sales Managers? Is the daily allowance for food and local travel, or is it only for food?

If a sales representative is from Bhopal, traveling locally, and we are providing travel expenses on an actual basis plus a mobile allowance, will we also pay DA separately for food? Similarly, if the representative is traveling to another city, and we are covering accommodation, actual travel expenses, and boarding, are they still eligible for DA? Please explain the purpose of DA in the FMCG industry.

Is it DA, which stands for Dearness Allowance, or something else? If it is DA, then DA is applicable only to Maharashtra State; in other states, the payment of DA is not mandatory.

Regards,
Janardan

No, I am talking about Daily Allowance, not Dearness Allowance.

Since you have a thorough idea about "Daily Allowance," there is no need to dwell much on it conceptually. However, to me, sorry, no offense, your query seems to be tinged with a sense of frugality. When an employee is deputed to outdoor work or activities connected with the establishment, whether within the same locality or elsewhere, he has to defray certain special expenses like travel, food and refreshments, lodging if necessitated, communication, etc., depending upon his cadre.

Actually, the reimbursement of expenses on food and refreshments on an actual basis or on a fixed sum basis commensurate with his employment status for local outdoor work, irrespective of the type of company or work, will facilitate his performance rather than being an extra income. So, please pay Daily Allowance for local work as well. For outdoor work involving inter-city trips, what you mentioned is sufficient, and no separate Daily Allowance need be paid.

A field employee in an FMCG company has to undertake constant and extensive travel and is exposed to many hazards apart from the target achievements. Amidst a tiresome day of hectic work and constant travel, the impact of good and hygienic food taken in a cozy ambiance on a person's body and mind is well-known to all of us, after all!