We are in the process of revisiting our deputation allowance policy and would like to understand the benchmark from software companies like Infosys, Wipro, and other IT services organizations. For a quick understanding, deputation allowance is the allowance paid to employees when they are based in a client location in the same or another city in India.
From India, Bangalore
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From India, Bangalore
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Hi Sameena,
Deputation allowance is generally paid when posted to work outside your normal posting, especially at clients' sites or projects, particularly in remote areas, to encourage completion before time and to compensate for additional expenses and hardships endured. The standard is 10% of basic and DA, but it's not a rule and need not be limited. It should be considered on a case-by-case basis depending on the responsibilities involved, extra time required, including work from home, and the criticality of completing the project on time. This implies that penalties or liquidated damages may be imposed if there is a risk of time and cost overruns. A higher percentage may be considered in cases where risks or remote locations are involved.
Thank you,
[Your Name]
From India, Bangalore
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1159Deputation allowance is generally paid when posted to work outside your normal posting, especially at clients' sites or projects, particularly in remote areas, to encourage completion before time and to compensate for additional expenses and hardships endured. The standard is 10% of basic and DA, but it's not a rule and need not be limited. It should be considered on a case-by-case basis depending on the responsibilities involved, extra time required, including work from home, and the criticality of completing the project on time. This implies that penalties or liquidated damages may be imposed if there is a risk of time and cost overruns. A higher percentage may be considered in cases where risks or remote locations are involved.
Thank you,
[Your Name]
From India, Bangalore
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ESI applicable to software development companies - Bom HC 2012.pdf