Types of fixed allowances available on Multiplier

Multiplier helps you add these fixed allowances as additional compensation for your employees.

S.No	Allowance Type	Description
1	Accommodation Allowance	Funds are provided to cover or subsidize the cost of employee housing.
2	Annual Bonus	A lump-sum payment given once a year, often based on performance or company profits.
3	Auto Allowance	Financial assistance for expenses related to using a personal vehicle for work.
4	Benefits Allowance	A general allowance that can be used towards various employee benefits.
5	Birthday Bonus	An additional payment is given to employees on their birthday.
6	Boarding Allowance	Money is provided to cover the cost of meals, especially when traveling for work.
7	Business Expense Allowance	Funds to reimburse employees for legitimate business-related expenses.
8	Car Allowance	A fixed amount is provided to employees for car-related expenses.
9	Child Care Allowance	Financial support to help employees with childcare costs.
10	Clothing Allowance	Money is provided to employees for purchasing work-appropriate attire.
11	Co-working Allowance	Funds to cover the expenses of using a co-working space for work.
12	Commission	A percentage of revenue earned by the employee, typically based on sales.
13	Communication Allowance	Funds to cover expenses related to phone calls, internet, and other communication.
14	Computer Allowance	Financial assistance for purchasing or maintaining a personal computer for work.
15	Connectivity Allowance	Money to help cover the costs of internet connectivity for remote work.
16	Conveyance Allowance	Funds provided for commuting or other work-related travel expenses.
17	Cost of living allowance	An adjustment to salary to account for differences in the cost of living in a specific location.
18	Creche Allowance	Similar to child care allowance, specifically for on-site or provided crèche facilities.
19	Curiosity Allowance	Funds provided to encourage learning and exploration of new skills or knowledge.
20	De Minimis Allowance	Small value benefits or allowances that are often exempt from taxation.
21	Educational Assistance	Financial aid for employees to pursue further education or training.
22	Electricity Allowance	Money to help cover the cost of electricity, especially for remote workers.
23	Entertainment Allowance	Funds for business-related entertainment expenses.
24	Equipment Allowance	Financial assistance for purchasing necessary work equipment.
25	Festive Bonus Allowance	An additional payment given during festive occasions.
26	Fitness Allowance	Funds to support employee health and wellness through gym memberships or fitness activities.
27	Flexible Benefits Allowance	A set amount that employees can allocate to various benefit options.
28	Food Allowance	Money is provided to cover the cost of meals.
29	Fuel Allowance	Reimbursement or a fixed amount to cover the cost of fuel for vehicles used for work.
30	Gross-up Allowance	An additional payment to cover the taxes on a taxable allowance, so the employee receives the full intended amount.
31	Gym Membership Allowance	Specifically for covering the cost of a gym membership.
32	Health Insurance Allowance	Funds provided to help employees pay for health insurance premiums.
33	Healthcare Allowance	A general allowance that can be used for various healthcare-related expenses.
34	Healthy Lifestyle Allowance	Funds to promote healthy habits, which could include fitness, nutrition, etc.
35	High Temperature Allowance	Additional pay for employees working in extremely hot conditions.
36	Holiday Bonus	An extra payment is given to employees around holiday periods.
37	Home Office Allowance	Funds to help cover the costs of setting up and maintaining a home office.
38	Housing Allowance	Similar to an accommodation allowance, specifically for housing expenses.
39	Insurance Allowance	Funds to help cover the cost of various types of insurance.
40	IT Tech Support Allowance	Financial assistance for IT technical support needs.
41	Joining Bonus	A one-time payment given to new employees upon joining.
42	Language Allowance	Compensation for proficiency in additional languages.
43	Laptop Allowance	Funds provided to employees for purchasing or maintaining a laptop.
44	Laundry Allowance	Reimbursement for laundry expenses.
45	Learning & Development Allowance	Funds allocated for professional development and learning activities.
46	Location Allowance	Additional pay based on the employee's work location.
47	Long Service Award Allowance	A bonus or allowance given to employees for their long tenure with the company.
48	Lunch Benefit Allowance	Financial assistance or provision for employee lunches.
49	Meal Allowance	Compensation for meal expenses, especially during work-related activities.
50	Medical Allowance	Financial assistance for medical expenses.
51	Mileage Allowance	Reimbursement for expenses incurred while using a personal vehicle for work.
52	Miscellaneous Allowance	Funds allocated for various work-related expenses not covered elsewhere.
53	Mobile and Phone Allowance	Compensation for the use of personal mobile phones for work purposes.
54	Mobility Allowance	Financial aid to cover commuting or relocation costs.
55	Night Shift Allowance	Additional pay for working during night shifts.
56	Non Taxable Allowance	Allowances that are exempt from income tax up to a certain limit.
57	Office Allowance	Funds to cover expenses related to setting up or maintaining a home office.
58	On call Allowance	Compensation for being available for work outside of regular hours.
59	Other Allowance [1]	A general category for an unspecified additional allowance.
60	Other Allowance [2]	A general category for another unspecified additional allowance.
61	Other Allowance [3]	A general category for yet another unspecified additional allowance.
62	Other Bonus [1]	A general category for an unspecified additional bonus.
63	Other Bonus [2]	A general category for another unspecified additional bonus.
64	Other Bonus [3]	A general category for yet another unspecified additional bonus.
65	Overtime Bonus	Additional pay for working beyond regular working hours.
66	Parking Allowance	Reimbursement for parking fees incurred for work-related purposes.
67	Pension Allowance	Contributions made by the employer towards an employee's pension fund.
68	Per Diem Allowance	A daily allowance to cover living expenses during business travel.
69	Performance Bonus [1]	A bonus awarded based on individual or company performance.
70	Performance Bonus [2]	Another type of bonus awarded based on performance metrics.
71	Performance Bonus [3]	Yet another type of bonus tied to performance achievements.
72	Phone and Internet Allowance	Compensation for internet and phone usage for work.
73	Relocation Allowance	Financial assistance to employees who relocate for work purposes.
74	Remote Work Allowance	Funds provided to support employees working remotely.
75	Responsibility Allowance	Additional pay for employees holding positions with greater responsibilities.
76	Retirement Allowance	Payments made to employees upon retirement.
77	Rice Allowance	Provision of rice or financial equivalent, common in some regions.
78	Sales Commission	A bonus or payment based on sales performance.
79	Schooling Allowance	Financial assistance for employees' children's education.
80	Shift Allowance	Additional pay for working in shifts other than the regular day shift.
81	Sign on Bonus	A one-time payment given to new employees upon signing an employment contract.
82	Social security Allowance	Employer contributions towards social security benefits.
83	Software Allowance	Funds provided to cover the costs of software licenses, subscriptions, or purchases necessary for work.
84	Special Allowance	An additional amount provided for specific or unique circumstances or job roles, often varying based on individual situations.
85	Stipend	A fixed or regular allowance, often for a specific purpose like living expenses during training or a temporary assignment.
86	Technology Allowance	Funds allocated to cover the costs of technology-related expenses, such as hardware, peripherals, or internet services.
87	Telecommunication Allowance	An allowance to reimburse employees for expenses related to phone calls and other communication costs incurred while working.
88	Teleworking Allowance	Funds provided to employees who work remotely to help cover the costs associated with setting up and maintaining a home office.
89	Training Allowance	An allowance to cover expenses related to professional development and training courses.
90	Transport Allowance	Funds provided to cover commuting costs or other work-related travel expenses, excluding longer journeys covered by travel allowance.
91	Travel Allowance	An allowance to cover expenses incurred during business trips, such as accommodation, meals, and transportation.
92	Uniform Allowance	Funds provided to employees who are required to wear specific work attire to help cover the cost of purchasing and maintaining their uniforms.
93	Unsociable Hours Allowance	Additional pay or an allowance for employees who work outside of standard working hours, such as evenings, nights, or weekends.
94	Utility Allowance	Funds provided to help cover the cost of utilities, such as electricity, gas, or water, often in the context of remote work or specific job requirements.
95	Vehicle Allowance	An allowance provided to employees who use their personal vehicle for work-related purposes to cover costs like fuel and maintenance.
96	Well-being Allowance	Funds provided to support employee health, mental health, and overall well-being, which can be used for activities or resources that promote wellness.
97	Wellness Allowance	Similar to a well-being allowance, this often specifically supports activities or memberships related to physical fitness and health.
98	Work From Home Allowance	Similar to teleworking allowance, this specifically helps cover costs associated with working from a home office setup.

Examples of fixed allowance

Joining Bonus

A joining bonus refers to the bonus given to the employee at the time of joining and will be mentioned in the contract. The actual payout of the joining bonus can be defined by setting the month and year and the amount that needs to be paid.

• During onboarding a new employee, you can add the details of the joining bonus, such as the amount, the payout month, and any additional notes.

• You can also add the joining bonus amount in installments. This means the employee will be paid the joining bonus in parts according to the payout months you specified.

Once you have added all the relevant information, Multiplier processes the joining bonus:

• The joining bonus will be auto-created and added as a pay supplement in the month specified as the payout month by the employer during onboarding.

• The pay supplement will appear under the Processing tab with a Created status in the platform's Pay supplements module.

• The bonus will be processed to the employee in the specified month’s pay cycle.

Note

• If the employee has been activated before the cut-off date, the joining bonus will be processed in the same month; otherwise, the joining bonus will be processed in the upcoming pay cycle.
• For semi-monthly employees, pay supplements will be processed in the 1st or 2nd pay cycle based on when the pay supplement is created.

Other allowances

Other additional pay items can be added based on the employer's requirements. The title of the pay type needs to be added. You can also add the frequency from any of the following: monthly, bi-monthly, semi-monthly, annually, quarterly, tri-annually, semi-annually, or even once. The month the additional pay item must be processed must also be set while onboarding.

• The pay item falling under ‘Others’ will be added as a pay supplement by Multiplier in the month specified by the employer during onboarding.

• The pay supplement will appear under the 'Pending' status in the Pay supplement module on the platform.

• Once the pay supplement has been added, an email will be sent to the admin requesting that the amount be input for that pay supplement.

• Once the admin fills in the amount, the request moves to the ‘Processing’ tab.

• The amount will be processed to the employee after the admin has added the actual amount to the respective pay supplement.