Allowance Meaning & Definition | What is Employee Allowance? | UBS

Allowance is the fixed amount paid to employees, other than basic salary. It is covering expenses for different kinds of activities such as renting a house, traveling to the workplace, traveling outside, eating food, etc. Salary allowances are categorized into three taxable, non-taxable, and partially taxable. Payment for all allowances is included within the CTC of employees.