Hi Sonali,
While preparing a travel policy, we need to consider several points together.
Firstly, define the classes of cities according to their Dearness Allowance:
- Metros will be classified as Class A cities.
- Capitals will fall under Class B cities.
- Other places will be categorized as Class C cities.
Once this is established, prepare the eligibility criteria for travel classes. This will involve defining the classes of employees such as Top Management, Managers, and others. Subsequently, outline the travel class eligibility, specifying who can travel via air, first-class AC, and so forth.
Next, determine the local travel arrangements, including which employees may hire taxis, who should use autos, buses, etc.
Following this, establish accommodation limits based on classes. Define who is eligible to stay in AC rooms, deluxe rooms, simple rooms, and up to what charges they can be reimbursed.
Lastly, set per diem expenses for employees based on their ranks when they are on business trips.
These elements should provide adequate content for the Travel Policy.
Best wishes,
Amit Seth.