Hi, I am working with an MNC in which the LTA policy is slightly different from the government rules. Here we cannot claim LTA for dependent parents, nor can we claim for first-class rail fare. These benefits are available in the government rules, but the employer's policy differs from this. Is there any rule that requires the employer to follow government policies? Kindly advise.
Regards,
From India
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Regards,
From India
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LTA being an additional benefit not forming part of salary or remuneration for work performed, the employer has the freedom to frame their own policy in this regard. Therefore, if your establishment has a policy to pay only employees' fare and that too second-class fare, then it has to be followed.
There are private companies that offer Leave Travel Allowances better than those provided by the government. Some companies pay LTA yearly, whereas many companies, including the government, pay it only once in two years or twice in a block of four years following the Income Tax Act.
A similar situation exists with medical expenses reimbursements; some companies allow bills of dependents, whereas others reimburse only employees' bills.
Regards,
Madhu.T.K
From India, Kannur
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4527There are private companies that offer Leave Travel Allowances better than those provided by the government. Some companies pay LTA yearly, whereas many companies, including the government, pay it only once in two years or twice in a block of four years following the Income Tax Act.
A similar situation exists with medical expenses reimbursements; some companies allow bills of dependents, whereas others reimburse only employees' bills.
Regards,
Madhu.T.K
From India, Kannur
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LTA Policy.doc