Chapter 6: Allowances
Allowances are payments that sit outside of Total Reward (TR) for such matters as:
- working conditions
- qualifications or special duties
- work-related expenses.
Availability of, and eligibility for, allowances depends on specific conditions typically provided under employment instruments and particular circumstances of positions.
The median value of allowances can be highly variable as shown in Figure 6.1. Various factors influence fluctuations, for example: changes in scope, repackaging of payments and changes in the size of the population covered.
The payment of allowances is also subject to the circumstances of individual employees who may qualify for a particular allowance in one year but not in another. Changes to employees’ circumstances can cause significant fluctuations in the median value of allowances from year to year.