Enhancement of daily

travel allowance

Existing travel allowance policy

Allowance is 1.5 Rs/km
Max claim in a month can be 1500 Rs
Not been revised from past two years.

Why ?
Overall
Increased
Travel
Expense

Increased
Cost per km

Fuel Cost

Traffic
Conditions

Increased
Travel

Higher
Maintenanc
e

More
Aggressive
Sales Target

Increase in
Area
Coverage

New Product
Launces

Effects

Employees has to pay through

their pocket

Leads to employee dissatisfaction

Productivity decreases

Affects their effort in reaching

sales target

They would like to save cost by

minimizing travel