Transport Allowance

Automated Transport Allowance:

Accurate Calculations with Zero Hassle

We specialize in customizing our software to meet specific customer requirements. Below is a detailed explanation of how we tailored a solution for a customer in Africa, addressing their unique need for automated transport allowances.

Customer Requirement

Customer Background:
Long-time user of Lenvica HRMS.
Request Overview:
Automate calculation and payment of transport allowances for employees.
Employee Transport Details:
Employees use different modes of transport:
Buses during the day(6AM to 6PM)
Taxis at night(6PM to 6AM)

There are three shifts. Morning(6AM to 2PM), Afternoon(2PM to 10PM) and night (10PM to 6AM)

If employee has to travel during the day, pay him his bus rate, or if employee has to travel during night, pay him the taxi rate.
System Requirements:
Automatically calculate transport fare based on clock-in and clock-out times.
Integrate calculated transport allowance into the employee’s monthly salary.

Solution

To meet the customer’s requirement, we implemented the following steps:

Step 1

Integrating Face Recognition Devices

We integrated face recognition devices to capture the clock-in and clock-out times of employees. These devices provide accurate data on when employees arrive and leave the workplace, ensuring the precise tracking of their working hours.

Step 2

Developing Route Definition Screens

We created screens within the software that allow the user to define various routes and assign employees to these routes. Users can also specify the bus and taxi fare for each route. This setup enables the software to understand which routes are relevant for calculating the transport allowance.

Step 3

Automating the Calculation of Transport Allowances

The software automatically calculates the bus or taxi fare for each day based on the employee’s clock-in and clock-out times. By analyzing the times, the software determines whether the employee traveled by bus or taxi and applies the corresponding fare. This automation ensures that the transport allowance is calculated accurately and consistently without manual intervention.

Step 4

Including Transport Allowances in Monthly Salaries

The bus/taxi fare calculated is then included as a transport allowance in the employees’ monthly payslips. This integration ensures that employees are compensated correctly for their commuting expenses. The transport allowance is seamlessly added to their salary, simplifying the payroll process for the company.

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Frequently Asked Questions

What is the transport allowance?

The transport allowance is a benefit provided to employees to cover their commuting costs. It is calculated based on the mode of transport used during different times of the day.

How is the transport allowance calculated?

The allowance is calculated based on the clock-in and clock-out times of the employees. The transport mode and rate are determined by the time of day: For example,

Daytime (6AM to 6PM): Travel is by bus, and the bus rate is applied.
Nighttime (6PM to 6AM): Travel is by taxi, and the taxi rate is applied.

How do the shifts affect the transport allowance?

The transport allowance is calculated based on the specific hours worked within each shift. For example:

If an employee works the morning shift (6AM to 2PM), the bus rate is applied for the entire duration.
If an employee works the night shift (10PM to 6AM), the taxi rate is applied for the entire duration.
For shifts that span both day and night periods, the allowance is calculated proportionally based on the hours falling within each period.

How is the transport allowance integrated into the monthly salary?

The calculated transport allowance is automatically added to the employee’s monthly salary. This ensures that employees receive their commuting cost compensation along with their regular salary.

What happens if there are changes to the transport rates?

Any updates to the transport rates (bus or taxi) are configured in the system. Once updated, the new rates will automatically be applied in the calculation of the transport allowance.

How can employees check their transport allowance?

Employees can view their transport allowance details in their payslip or through the HRMS employee portal, where a breakdown of the allowance calculation is provided.

What if an employee works overtime?

If an employee works overtime, the transport allowance will be calculated based on the actual clock-out time, applying the relevant rates for the additional hours worked.

Is transport allowance taxable?

The taxability of transport allowance depends on local tax regulations. Employees should check with the HR or finance department for specific details.

How frequently are transport rates reviewed and updated?

Transport rates are reviewed periodically based on external factors like fuel prices and transport service rates. Updates will be communicated to employees.