Normally,Flat salary is not given.

It is broken into different heads like Basic,DA,HRA, Medical Reimbursement etc,

Some of these are called Allowances while others are called perquisites as explained below


Normally Salary given by employer to employee is of 2 types

1. Allowance It is a fixed or flat amount given to employees


2. Perquisites   It is a  facility or benefit given to employees. They can be further classified into

     a. Monetary Perquisites. -They are in nature of reimbursement or Employee first incurs an expense and then claim it from the company

     b. Non Monetary Perquisites- They are in nature of free facility given by the employer


What are Allowances and Perquisites - Basic Concepts

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.