Conveyance Policy

Hi Friends,

I would like understand that how should we create Conveyance Policy. Should we can allocate standard amount for each grade/Designation/Location.

Who all are eligible for Conveyance in the Company.

Best Regards

Devika Rao


Hi @Devika .

When creating a conveyance policy, it’s essential to consider various factors to ensure fairness and effectiveness. While it is possible to establish standard amounts for conveyance allowances based on grade, designation, and location, it’s important to approach it with careful consideration. Here’s a general framework to guide you in creating a conveyance policy:

  1. Assess Business Needs: Understand the business requirements and determine the purpose of the conveyance policy. Consider factors such as the nature of work, travel requirements, and the company’s budget.
  2. Analyze Roles and Locations: Evaluate different job roles, designations, and locations within the organization. Determine if there are any specific conveyance needs or variations based on these factors. For example, employees in sales roles or those who frequently travel may require higher conveyance allowances.
  3. Consider Local Factors: Take into account the cost of living, transportation infrastructure, and commuting challenges specific to each location. Adjust the conveyance amounts accordingly to ensure they align with local circumstances.
  4. Establish Fairness: Strive for fairness and consistency within the organization. Avoid creating large discrepancies in conveyance allowances between employees of similar roles or grades. Consider factors such as distance traveled, mode of transportation, and the impact on employees’ personal expenses.
  5. Review Legal and Tax Considerations: Ensure compliance with local labor laws and regulations regarding conveyance allowances. Also, consider the tax implications for both the organization and employees, as conveyance allowances may be subject to tax deductions or exemptions.
  6. Communicate the Policy Clearly: Clearly outline the conveyance policy in writing, including eligibility criteria, the methodology for determining allowances, submission requirements, and any reimbursement procedures. Communicate the policy to all employees and address any questions or concerns they may have.
  7. Regularly Review and Update: Periodically review the conveyance policy to ensure it remains relevant and aligned with changing business needs, market conditions, and legal requirements.

It’s important to note that every organization is unique, and the specifics of your conveyance policy may vary based on your company’s size, industry, and culture. Consulting with HR professionals, legal advisors, and considering employee feedback can further help tailor the conveyance policy to your organization’s needs.



Thank you so much Radhika for such prompt response and detailed information. This will be very helpful to me.


The eligibility criteria for conveyance allowances can vary from company to company and depend on the organization’s policies and practices. While specific eligibility requirements may differ, here are some common factors that determine eligibility for conveyance allowances:

  1. Job Roles/Positions: Certain job roles or positions may be eligible for conveyance allowances due to the nature of their work, such as field sales representatives, delivery personnel, or employees who frequently travel for business purposes.

  2. Commuting Distance: Employees who have a significant commuting distance to their workplace may be eligible for conveyance allowances. The distance threshold can vary based on company policies and local factors.

  3. Travel Requirements: Employees who need to travel for business purposes, such as attending client meetings, industry conferences, or site visits, may be eligible for conveyance allowances. This may be applicable to employees across various job roles and levels.

  4. Transport Mode: Depending on the transport mode used, employees may be eligible for conveyance allowances. This can include employees who use their personal vehicles, public transportation, or company-provided transportation for commuting or work-related travel.

  5. Policy and Contractual Agreements: Eligibility for conveyance allowances may be outlined in company policies, employment contracts, or collective bargaining agreements. Employees should review these documents to understand their entitlements.


Thank you Sabari for your response and the detailed information. Will be very useful for me.


@Devika sure anytime :slight_smile: