Dear All,
The purpose of this post is to conduct a survey on travel reimbursement rates. Please specify the rate at which travel expenses are reimbursed in your organization. It would be helpful if you could provide the exact amount along with details about your industry.
For example:
- Rs. 3 for a bike
- Rs. 6 for a car
Industry: Healthcare/Hospital
Thank you.
From India, Delhi
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26The purpose of this post is to conduct a survey on travel reimbursement rates. Please specify the rate at which travel expenses are reimbursed in your organization. It would be helpful if you could provide the exact amount along with details about your industry.
For example:
- Rs. 3 for a bike
- Rs. 6 for a car
Industry: Healthcare/Hospital
Thank you.
From India, Delhi
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Dear Riya
In our Company Management staff at Company’s discretion may be permitted to use their personal vehicles for out-of-town business trips when the distance exceeds the 30 kms. limit. Such approval should be granted by the immediate reporting manager and the Locational Head of division/function. For such trips they will be reimbursed at a flat rate as under:
Car Rs.7/- per km
Moto Cycle Rs.3/- per km
Apart from the above, no other reimburesement will be made towards damages,wear & tear etc of the vehicle.
Regards
Jayan.........
From India, Madras
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In our Company Management staff at Company’s discretion may be permitted to use their personal vehicles for out-of-town business trips when the distance exceeds the 30 kms. limit. Such approval should be granted by the immediate reporting manager and the Locational Head of division/function. For such trips they will be reimbursed at a flat rate as under:
Car Rs.7/- per km
Moto Cycle Rs.3/- per km
Apart from the above, no other reimburesement will be made towards damages,wear & tear etc of the vehicle.
Regards
Jayan.........
From India, Madras
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Riya, It varies from company to company. It is Rs.8/- (4 tyred) and 6/ (2 tyred)- Km in our organisation. I don’t know the basis of such rates as I am not HR man. Pon
From India, Lucknow
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From India, Lucknow
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Guys,
Assume a bike gives 40 km per litre, then at Rs. 4/-, it would work out to Rs. 160/- per liter, i.e., roughly 2.3 times the petrol price.
Assume a car gives 12 km (Santro types), then at Rs. 7/-, it would work out to Rs. 84/- per liter, about 1.2 times.
Assume a car gives 10 km (City types), then at Rs. 7/-, it works out to Rs. 70/- per liter, about 1 times.
Then you have periodic maintenance and wear and tear.
I have always wondered what logic is used to say "this is fair or this is not fair." I think the rate should be such that the employee feels that he is neither gaining nor losing anything by using his personal vehicle. The best way is to have 1.5 times as the logic with 3 categories of rates, not 2:
1) Junior level @ 1.5 times assuming a bike
2) Middle Level @ 1.5 times assuming a 4 to 5 lac car, i.e., 12 km/liter
3) Senior Level @ 1.5 times assuming an 8 to 10 lac car, i.e., 10 km/liter
Don't bother about diesel or petrol because diesel cars have more maintenance. Be fair to your employees, and they will be fair to you.
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Assume a bike gives 40 km per litre, then at Rs. 4/-, it would work out to Rs. 160/- per liter, i.e., roughly 2.3 times the petrol price.
Assume a car gives 12 km (Santro types), then at Rs. 7/-, it would work out to Rs. 84/- per liter, about 1.2 times.
Assume a car gives 10 km (City types), then at Rs. 7/-, it works out to Rs. 70/- per liter, about 1 times.
Then you have periodic maintenance and wear and tear.
I have always wondered what logic is used to say "this is fair or this is not fair." I think the rate should be such that the employee feels that he is neither gaining nor losing anything by using his personal vehicle. The best way is to have 1.5 times as the logic with 3 categories of rates, not 2:
1) Junior level @ 1.5 times assuming a bike
2) Middle Level @ 1.5 times assuming a 4 to 5 lac car, i.e., 12 km/liter
3) Senior Level @ 1.5 times assuming an 8 to 10 lac car, i.e., 10 km/liter
Don't bother about diesel or petrol because diesel cars have more maintenance. Be fair to your employees, and they will be fair to you.
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Riya In our organisation we pay as per the details given below Rs 2.5/KM for Bike Rs 5.00/KM for Front Line Sales Manager Rs 6.5/KM upto 1200CC CAR Rs 8.5/KM for above 1200 CC
From India, Delhi
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From India, Delhi
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Guys,
It would be great if some senior HR or Finance member gives us the logic behind the calculation. It would help us decide on policy issues as we can have a healthy debate on the logic and firm up our views, which we can use to frame the policy in our respective organizations. This issue is a major bugbear in most companies where you have many salespeople. It is also an issue that causes a lot of heartburn. I would love to design a win-win policy that everybody feels is fair to all the stakeholders.
Shivram
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It would be great if some senior HR or Finance member gives us the logic behind the calculation. It would help us decide on policy issues as we can have a healthy debate on the logic and firm up our views, which we can use to frame the policy in our respective organizations. This issue is a major bugbear in most companies where you have many salespeople. It is also an issue that causes a lot of heartburn. I would love to design a win-win policy that everybody feels is fair to all the stakeholders.
Shivram
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Hi All,
I am sure the rates which you have mentioned here are now obsolete. Kindly update the latest information for FY 2013-14 as we can see a hike in fuel prices. Your prompt response is highly appreciated.
Regards
From India, Delhi
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I am sure the rates which you have mentioned here are now obsolete. Kindly update the latest information for FY 2013-14 as we can see a hike in fuel prices. Your prompt response is highly appreciated.
Regards
From India, Delhi
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Expense and Travel Reimbursement-I SG.doc