Switching from Annual Air Tickets to Cash: How Do You Feel About This Change?

Currently, we are providing an annual ticket for our employees. However, sometimes employees are not satisfied with the options we offer, and the admin department representatives are also occupied with managing this process. Therefore, we have decided to provide cash instead. Please share your thoughts on this change.

Dear Abdullah Kasim,

Yes, instead of making travel arrangements, you may pay an allowance to the employees to visit their homes. However, instead of paying cash, it is better to route the allowance through monthly pay. If the allowances get reflected in the payslip, the calculation of income tax becomes easy.

Thanks,

Dinesh Divekar

Hi,

It would be better if the policy is removed, and the employees are made to understand that the amount is included in their salaries. You may circulate a memo internally to that effect before implementation to gather feedback. Paying by cash is not going to solve the issue and might even escalate it, so it's better to avoid such practices. Check the impact on taxes in your region and make necessary adjustments before developing a proper plan.

Thanks and Regards

My dad worked in a petroleum company in the Middle East. His company had defined fares based on kilometers for a visit to their home country. The company would reimburse the employee whichever amount is lower. Therefore, employees are careful while booking tickets to avoid overspending.

Travel Options for Senior Executives

Senior executives had the option of business/first class, and the most senior members had reimbursement at actual costs. In case an employee chooses not to travel in a particular year, they receive the defined fare based on the kilometers to their home country.