Please let me know if anyone has designed travel expense /reimbursement policy for own vehicle and cab fare.Just want to understand per km cost for 2 wheeler and 4 wheeler for metro cities.And any upper fare on cab charges ?

Hi @Shilpi Minocha designing a travel expense policy depends on the purpose of it, in larger cases Travel reimbursement is given to employees who work in shifts and who opt for their own transport instead of company issued cab for reasons. in such cases General shift starts from 9 am to 7pm any shift ending post 8 pm are covered under the policy. In such cases we need to do a demographic study of the employee population the distance the employees commute from and categories closer by areas into one or hub and then derive at a price based on the distance per KM. Cabs is hard to do it as it is higher at peak times with surge fee etc. rather have a flat charge which can be reimbursed. In general companies located at the heart of the city and well connected companies do not give allowance for the general shifts and can choose to cover only one way commute for shifts ending outside the general shift timing.

Thanks Kartik for such a detailed guidance.Most of my employees are in Delhi and the purpose is mostly client visits that they do.how do I come up with per km cost in such a case-is there any standard limit I can refer to

Hi Shilpi, there is no standard limits here, it is more of an internal call that you take based on the consumption, distance travelled etc, else go in for a flat reimbursement for eg. 2,000 rs for two wheeler and 3,000 rs for four wheeler, keeping in mind the cost of fuel price. if we think of doing it KM wise provided we know the normal route etc that they take and the distance covered we will have to for eg. do 25 rs per km * 100 (two wheeler) km assuming they would travel 100 km in a month that comes up to 2500 rs a month. Rather I would suggest in having a flat reimbursement charge per month to avoid misuse.

Okay thank you so much !