Navigating Same-City Deputation: Are Allowances Provided for Local Transfers?

Hi all, I need your suggestions or valuable points on the same-city deputation policy and allowances to be paid. I have gone through a few, but those policies explain about pan-India working deputations. I want to know something like this: if Employee A from host company B in Bangalore is deputed to a client company C office in Bangalore, will there be any deputation allowances provided to Employee A? It would be great if you could highlight some companies that have such deputation policies in place.

Best regards, Tulika

Understanding Deputation and Allowances

Deputation means loaning the services of an employee to another unit of the same company or to a different company, either at the same place or different locations. Whenever such deputation occurs, it is common to pay a deputation allowance to the employee as an incentive to motivate the employee to accept the deputation. However, whether such allowance is payable in any specific case depends on the terms of the contract of service or the letter of appointment. If the contract provides for the payment of such an allowance, then the employee is entitled to it.

Regards, Saikumar

Deputation Duty Allowance Guidelines

As such, the deputation duty allowance can be regulated as per the company's policy. In case there is no such policy, a view may be taken based on the usefulness of such deputation for the parent organization. In the case of Government of India employees, at present, the deputation duty allowance is regulated as per DOPT guidelines dated 03.09.2008 (file attached), summarized below:

Deputation (Duty) Allowance

The deputation (duty) allowance admissible shall be at the following rates:

(a) In the case of deputation within the same station, the allowance will be paid at the rate of 5% of basic pay subject to a maximum of Rs. 2000 per month; and

(b) In other cases, Deputation (Duty) Allowance will be payable at the rate of 10% of the employee's basic pay subject to a maximum of Rs. 4000 per month.

The above is also applicable for the Government of India Public Sector Undertakings (PSUs).

Private sector organizations may devise their own policy on such allowance based on industry standards.

Thanks

Thanks to you all, but the question was for the private IT sector. If anyone from any IT firm has any deputation policy, especially regarding how much amount you are paying to the employees, please provide me with the details. This information would be more helpful.