Some common types of allowances include vehicle allowances, housing allowances, or travel allowances. It is typically negotiated into the employment contract. Allowances – A form of payments paid at the discretion of the company or to contribute towards the expenses of an employee.Usually, this amount is a set amount that does not change over time unless there is a promotion or salary increase. Basic salary – This is the main part of an employee’s salary.
While others use a tiered structure with elements such as a basic salary, benefits, allowances, overtime, and other incentives being part of a standard salary of an employee. Some use a simple salary structure with the total amount of earnings counting as the basic salary. In Sri Lanka, companies use different structures when calculating the salaries of employees. Learn to Manage Salaries With Us What are the types of payments and deductions found in salary slips?
