What Allowances Should Be Paid for a Month-Long Employee Deputation to a Client Site?

Allowances for Employee Deputation to Client Site

Should an employee be deputed to a client place for a month or so, what should be the allowances payable and how much? Please help me with details or an appropriate policy.

Hi, deputation allowances are company-specific. Generally, such allowances are fixed by companies based on the location where the employee is deputed, whether it's a metro or non-metro area. The grade and position of the deputed employee also play a significant role in determining these allowances.

When fixing deputation allowances, it is important to consider whether the client's location is within the city or outside, and whether travel or accommodation is required.

Thank you.

Understanding Traveling Allowance

Traveling allowance refers to the coverage of travel expenses incurred in various modes of transportation such as planes, buses, trains, cabs, autos, and even porter services, along with food and lodging expenses, including the cost of boarding in hotels. These expenses are determined based on the employee's grade level, whether they are Non-executive, Executive, or Manager.

Prior to setting the allowances, the HR department typically conducts a survey to understand the market prices of each component in the locations where employees may need to travel for business purposes. Following this assessment, the rates of allowances are established for different categories of employees, taking into account some incidental expenses as well.

In order to manage costs effectively, many businesses operate transit houses at their business locations to provide accommodation at a lower cost.