Is Integrating Travel Reimbursement into Salaries a Practical Move for Frequent Travelers?

I am writing to inquire about the possibility of including travel reimbursement in our salary structure for employees who frequently travel for business purposes.

As you may be aware, it often requires employees to travel to various locations to attend meetings, conferences, and other work-related events. Currently, these expenses are reimbursed separately, outside of the regular salary structure.

Thank you for your attention to this matter. I look forward to hearing your thoughts and discussing the potential integration of travel reimbursement into our salary structure.

Hi Siva, Any expenses incurred due to business travel shall be reimbursed separately and shall not be part of the wages. How can you decide on how much the expenses per month are due to business travel? What mechanism are you planning for this? If at all that's included as part of the salary, then even that amount will attract Income Tax, which is a loss to the employee as well.

Hi, If you want to include travel reimbursement as part of the salary structure, then you may arrive at grade-wise travel reimbursement entitlement, which can form part of CTC. However, reimbursement cannot be made based on actual expenses but is limited to grade-wise entitlement.

Travel expenses are incurred for the business development of an organization and, as such, cannot be considered a part of CTC. However, you can restructure travel expenses entitlement as per the grade or position.

Regards, R R Kapoor
Vadodara