Conveyance and Travel Allowances for Sales Teams: Is It Feasible and Fair?

Can we provide conveyance and travel allowances to sales employees?

Understanding Conveyance and Travel Allowances

It appears that there is some confusion between the two phrases. A salesperson may have to attend to a client within the same city. The means of transportation could be a bus, a 2-wheeler, a 4-wheeler, etc. When a salesperson claims the fare, it is called Conveyance Allowance as the commute is within the same city.

Travel Allowance for Outstation Visits

A salesperson might have to travel to an outstation to attend a client. For this, his/her travel could be by bus, rail, airplane, etc. The outstation visit may require staying at a hotel as well. Therefore, when a salesperson raises the claim, it will include travel as well as accommodation charges. This is known as Travel Allowance.

Dear Madam,

Any travel policy covers local and outstation conveyance, lodging, boarding, and incidental expenses. There is no difference between travel and conveyance allowances except in nomenclature. Both are the same. You can use either one for both.

Regards, Vinayak Nagarkar HR Consultant

Dear Ms. MV,

The section on Traveling & Allowances in a company's Statutory Book clearly defines travel as a movement from one location to another outstation location and comprises travel (whatever the mode) + incidentals including boarding and lodging.

Conveyance allowance is the payment made for commuting to and fro between the residence and the place of work. It is normally included as CA in the salary slip of the staff.

Regards,
Arif ur Rehman