A benefit allowance is money that a company or government agency provides to an employee for a specific purpose, such as transportation, healthcare costs, or a flexible spending account. Benefit allowances administered to employees can be distributed through regular payroll.
How Benefit Allowance Works
Employers can use a benefit allowance to give employees flexibility in creating a benefits package that best meets their needs. Rather than imposing a particular healthcare plan on all employees, for example, the employer could offer a base plan plus a benefit allowance.
Employers might establish a benefit allowance that also includes coverage for wellness programs, such as gym memberships, that contribute to the overall health of the employee. The employee could use the benefit allowance toward supplemental benefits such as dental insurance or coverage for dependents.
This is the reason why the company chose to implement a paid leave allowance policy.
The main objective of the policy is to establish standard guidelines on paid leave allowances.
This policy covers all HOIT Employees that are entitled with allowances.
Allowances can be:
- Housing Allowance – a sum of money given to employees to subsidies the cost of renting a house.
- Leadership Allowance – a sum of money given to employees where the employer requires the performance of leadership duties.
- Paid Leave – refers to either a vacation, sick, or anniversary leave with pay availed by an employee.
The guidelines of the policy are as follows:
1. If an employee is entitled to receive a housing or leadership allowance as per their employment contract, when they are on paid leave, they will receive the housing and leadership allowance only for the days they are on Paid Leave. Other allowances not stated in this policy are not included.
2. Process and procedure of availing paid leave can be seen on “Leave Application Policy” through this link: https://hoit-my.sharepoint.com/personal/ersonc_houseofit_com_au/_layouts/15/onedrive.aspx?originalPath=aHR0cHM6Ly9ob2l0LW15LnNoYXJlcG9pbnQuY29tLzpmOi9nL3BlcnNvbmFsL2Vyc29uY19ob3VzZW9maXRfY29tX2F1L0VtbVVScWdBSXRwRXVUdkZvRjNqWGdnQlB5NEJlSjdDeUdLTWE5T2VMaW9rQmc%5FcnRpbWU9a0JLckVPcVoyVWc&id=%2Fpersonal%2Fersonc%5Fhouseofit%5Fcom%5Fau%2FDocuments%2FHOIT%20PUBLIC%20FOLDER%2FCompany%20Policies%2FAttendance%20%2D%20Leave%20Policies%2FLeave%20Application%20Policy%20Rev%200%2Epdf&parent=%2Fpersonal%2Fersonc%5Fhouseofit%5Fcom%5Fau%2FDocuments%2FHOIT%20PUBLIC%20FOLDER%2FCompany%20Policies%2FAttendance%20%2D%20Leave%20Policies