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  An employment allowance is a payment made by an employer to an employee as part of their salary or wages. Allowances are typically paid in addition to the employee’s base pay.

 

  Allowances are often non-contractual and as such can be revoked by employers.

 

Common employee allowance examples:

  • The costs of traveling for work (transportation, meals, and lodging)

  • A housing allowance

  • Education allowance

  • Transport allowance

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