How Can We Break Down Employee Allowances in Manufacturing for Better Clarity?

Dear Members,

As of now, except for HRA and the basic rest, everything we are providing is categorized as Special Allowances. However, I would like to break down the list into smaller sections and include more allowances. One thing I can remember is "Medical Allowances," which are $1250 per month.

Please let me know what else I can break them into and if there is a simple calculation sheet that we can use to determine the amount.

My company comes under manufacturing.

Hi, you can add conveyance allowance.

Medical reimbursement allowance

Medical reimbursement allowance of Rs. 15,000 per year (Rs. 1,250 per month) was earlier exempted subject to the production of medical bills. However, this is no longer in practice. You may keep the medical allowance for namesake.

In the list provided, the correct spelling and formatting should be as follows:

BASIC, DA, HRA, Conveyance, Washing Allowance, House Maintenance Allowance, Canteen Subsidy, Magazine Allowance, Special Allowance, Other Allowances, etc.

Thank you.

I am curious to know what benefit you think breaking up the special allowances into smaller items will bring to the employees (or to the company).