How to Adjust CTC for BPO Agents Not Using Conveyance and Food Allowances?

Hello,

In the BPO division of our organization, the traveling allowance is included in the CTC structure for agents who do not utilize pick-up and drop services. The amount is 960 P.M. (not 800 P.M.).

For individuals who do not avail pick-up and drop services, how can we adjust that amount? For instance, CTC with Conveyance Allowance (Rs. 960 P.M.) = 10,000. How should we modify the CTC for agents who do not receive conveyance allowance? Can the Special Allowance portion be increased to compensate for this?

Likewise, concerning food allowance: What steps should be taken for agents who do not make use of the food allowance? Can the Special Allowance component be adjusted accordingly?

Please advise.

Thanks and regards,
Ayona

Hi Ayona,

You are on the right track. You can adjust them with a special allowance.

Regards,
Sirisha K.

Hi Anoya,

I am not quite getting your doubt. All I can figure out is this (correct me if I'm wrong): There are some agents who are not using the pickup/drop facility. The company is giving Rs 960 per month to them. Now, if this amount is given under conveyance allowance, such employees will get an exemption on the TA up to Rs 800 per month. The rest Rs 160 per month will be taxable. If this amount is given under any other allowance, it will attract tax as per that particular allowance. You can adjust and name your allowances in such a manner that employees will attract the least tax liability. Hope this solves your doubt. If not, please write back.

Regards,
Nikhil

Hello Nikhil,

Thank you for your suggestion. My query is regarding the conveyance allowance in our BPO division. Currently, agents who do not utilize the pick and drop facility receive Rs. 960 per month as conveyance allowance. However, agents who do use this facility do not receive any conveyance allowance. In this scenario, can I increase the Special Allowance to compensate for this difference?

I hope this clarifies my question for you. Additionally, I would appreciate it if you could provide some insight into whether the Special Allowance must be a fixed percentage of the basic salary.

Thank you and regards,
Ayona

Hello Ayona,

Why do you want to increase the special allowance of the agents (to Rs. 960) who are availing the pick-up and drop facility? Those who are receiving this allowance are not using the pick-up/drop facility, right? Or am I confused again? :-(

There is no hard and fast rule on the percentage of special allowance. You can set it as high as you want.

Please write to me at [Login to view] if you still need any clarifications.

Sorry to confuse you, Han!!!

Nikhil

Hi Nikhil,

I think you are not understanding me, or perhaps I am failing to make you understand! Anyway, I have got my answer!!

Thanks again for your suggestions.

Ayona