B. Earning Components | 7. Other Allowance
Other Allowance is a flexible and optional component of the salary structure that employers may provide to cover miscellaneous expenses not classified under specific heads like HRA, Medical, or Travel.
📋 Key Features:
- Not mandatory under any law or regulation
- Not fixed or percentage-based
- Employer has full discretion to:
- Include or exclude it from salary structure
- Decide amount based on policy or designation
- Used to balance CTC or offer additional perks
💡 Use Cases:
- Can be labeled for performance bonuses, flexi-pay, or lifestyle support
- Enables flexible, employee-friendly salary structuring
✅ Summary:
- Optional and customizable salary component
- No legal requirement or fixed formula
- Employer-specific inclusion & amount
- Often used for employee engagement or CTC optimization
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