Dear All,
I need a small clarification. In our company, Traveling Allowance is a part of Monthly Gross. However, in case anybody takes leave, the Company pays all the components but only transport allowance is deducted for the leave taken. If Transport Allowance is part of our CTC, can the company deduct this amount? This practice has been followed for a long time under the instruction of our MD, and nobody has objected.
I need to know whether this practice is right. If not, how should I explain to the Management and try to rectify it?
From India, Mumbai
Acknowledge(0)
Amend(0)
1I need a small clarification. In our company, Traveling Allowance is a part of Monthly Gross. However, in case anybody takes leave, the Company pays all the components but only transport allowance is deducted for the leave taken. If Transport Allowance is part of our CTC, can the company deduct this amount? This practice has been followed for a long time under the instruction of our MD, and nobody has objected.
I need to know whether this practice is right. If not, how should I explain to the Management and try to rectify it?
From India, Mumbai
Acknowledge(0)Amend(0)
Travelling allowance, conveyance allowance, or transport allowance is an allowance available to an employee to reach the office and return home. Therefore, if it is not paid for the days the employee remained on leave, whether paid leave or unpaid leave, there is no illegality. However, very often this allowance is a lump sum amount per month, and as such, it will be payable for paid leave days as well. Still, you cannot take it as a right. CTC (Cost To Company) has no legal relevance. It shall include all costs of keeping an employee in service. Therefore, it shall be an amount that the company will incur if you are present on all days.
From India, Kannur
Acknowledge(0)Amend(0)
From India, Kannur
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Leave Travel Allowance.doc
The Ins & Outs of Leave Travel Allowance.pdf