An allowance is a supplementary payment made to employees in addition to their regular salary. This blog explores the various types of allowances offered by employers, including house rent allowance (HRA), travel allowance, and dearness allowance. We’ll also discuss the importance of allowances in improving employee satisfaction and how they are structured according to an employee’s role, location, and needs. Additionally, we’ll cover the tax implications and legal guidelines surrounding different types of allowances.
