Perquisite and Allowances

PERKS AND ALLOWANCES 1

1.0 Payment of perks and allowances to regular employees and trainees shall be made
under the ‘Cafeteria Approach’ under which employees can choose from a given
set of cafeteria of perquisite and allowance subject to ceilings as mentioned at 2.0
below. The recurring cost incurred on running and maintenance of infrastructure
facilities like school etc. would be outside the ceiling.

2.0 The perks and allowances under cafeteria shall be subject to ceiling of 35% of the
basic pay w.e.f. 01.01.2017 for regular employees 2.
Trainees in Executive category will be paid perks and allowances @ 12 % of basic pay
during training period. The Perks and Allowances @ 12% of Basic Pay comprises of
Transport Allowance, Washing Allowance and Canteen Allowance. However, on
regularization, they shall be allowed to exercise option under ‘Cafeteria Approach @
35%’ by the end of the month following the month in which they are regularized.

3.0 The following Perquisites and Allowances shall form part of “Cafeteria Approach”
limited to 35% of Basic Pay:

S No Perquisite & Allowances % of basic pay

1 Canteen Allowance 4% - 21%
2 Children Education Expenses 4% - 11%
3 Child Hostel Allowance 4% - 11%
4 Leave travel Allowance 11%
5 Professional Updation Allowance 1% - 10%
6 Transport Allowance 1% - 14%
7 Washing Allowance 4%
8 Vehicle maintenance 4%
9 Festival Allowance 7%
10 Domiciliary Asst. 7%
11 Electricity Allowance 7%
12 Driver Allowance. 7%
13 Upkeep Allowance 7%
14 Community Work Allowance 4%
15 Green Measures Allowance 4%
16 Vacation Allowance 11%
17 Security Allowance 4%
18 Consulting Allowance 4%
19 Uniform Maintenance Allowance 2% - 15%
20* Driver Allowance for official purpose 1% - 4%
21** Helper Allowance 2%-8%
* This allowance can only be claimed by those employees who are availing
conveyance reimbursement for four-wheeler.
** Expenses incurred on engaging Helper for performing duties of office, would
be allowed to those Executives who are not provided attendant at residential
office.

1 Cir No. 256/2009 dated 23.10.2009

2
Cir No. 404/2018 dated 29.05.2018

Issued on: 23.10.2009 Last updated on: 29.05.2018

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Perquisite and Allowances

4.0 As regard, Company owned accommodation provided to the executives, the

Company would bear the Income tax liability on the “non-monetary perquisite’ of
which 50% shall be loaded within the ceiling of 35% of basic pay on perks and
allowances.

5.0 Under the Cafeteria Approach, employees would be allowed to choose from the
existing basket of perks and allowances, at the beginning of the Financial Year
subject to the maximum limit of 35% of the basic pay. In case no fresh option is
exercised at the beginning of each financial year, the option exercised for the
preceding financial year, will continue till the end of the current financial year as well.

5.1 LTC shall form part of the ‘Cafeteria’ for other perquisite and allowances. For
claiming Income tax benefit vouchers pertaining to journey undertaken for the
applicable block year may be submitted within the relevant financial year.

5.2 On transfer, the employees shall be allowed to change the option.

5.3 The cafeteria payment shall be made on basis of certification. Whenever required,
the format(s) for certification will be issued separately.

5.4 In case of employees placed under suspension, only subsistence allowance on the
revised basic pay shall be applicable. A suspended executive shall not be eligible to
opt for perquisite under the cafeteria.

5.5 Employees on long study leave, EOL or any grounds shall not be eligible to opt for
perquisite allowance under the cafeteria. However employees on
maternity/paternity leave, disability leave due to accident and sponsored study
leave shall be eligible for perquisites and allowances under cafeteria. 3

5.6 In respect of employees posted outside India, the perquisite and allowance under
the ‘Cafeteria’ shall be notified separately.

5.7 Payment on account of perquisite and allowance shall be subject to income tax as
per Income Tax Act. Vouchers/documentary evidence if required may be submitted
for claiming exemption under the Act.

3
Corporate Circular Ref. C/HR/IR&W/PayRev dated 11.02.2010

Issued on: 23.10.2009 Last updated on: 29.05.2018

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Perquisite and Allowances

Annexure
OPTION FORM FOR ALLOWANCES/PERKS UNDER “CAFETERIA”
FOR THE FINANCIAL YEAR………………….. (Workflow Through ESS)

1. Name of the employee :

2. Designation/Department :

3. Employee No. :

S No Perquisite & Allowances % of basic pay

1 Canteen Allowance 4% - 21%
2 Children Education Expenses 4% - 11%
3 Child Hostel Allowance 4% - 11%
4 Leave travel Allowance 11%
5 Professional Updation Allowance 1% - 10%
6 Transport Allowance 1% - 14%
7 Washing Allowance 4%
8 Vehicle maintenance 4%
9 Festival Allowance 7%
10 Domiciliary Asst. 7%
11 Electricity Allowance 7%
12 Driver Allowance. 7%
13 Upkeep Allowance 7%
14 Community Work Allowance 4%
15 Green Measures Allowance 4%
16 Vacation Allowance 11%
17 Security Allowance 4%
18 Consulting Allowance 4%
19 Uniform Maintenance Allowance 2% - 15%
20* Driver Allowance for official purpose 1% - 4%
21** Helper Allowance 2%-8%
* This allowance can only be claimed by those employees who are availing
conveyance reimbursement for four-wheeler.
** Expenses incurred on engaging Helper for performing duties of office, would
be allowed to those Executives who are not provided attendant at residential
office.

I hereby opt for the above perquisite and allowance for the financial year………..
restricted to 35% of Basic Pay.

Signature
Date:………….
For use in F&A Deptt.

1. Maximum entitlement of perks & allowances of employee: ……..………

2. Total amount opted by the employee : …………….

F&A Executive Accounts Assistant/Accountant

Issued on: 23.10.2009 Last updated on: 29.05.2018

Doc ID: H03-019 Page 3 of 3