What is petrol allowance for employees?
Fuel allowance or petrol allowance in salary is one of the components of flexible benefits provided by employers to their employees.
It covers the expenses incurred on fuel for official purposes. Employers give a fixed amount that employees can use towards their fuel expenses.
It is essentially an allowance given to employees who use their personal vehicles for work-related travel.
Fuel allowance tax exemption - how much is exempted?
The fuel allowance received by employees is subject to certain tax exemptions under section 10. The government has set a maximum limit of ₹ 2400 per month.
It means for an employee who has a taxable salary, ₹2400 of the monthly salary is non-taxable if the employer chooses to offer fuel allowance.
Petrol allowance calculation - how to do it?
The upper limit allowance for petrol/fuel is fixed by the government as ₹2400 per month for all employees with taxable income. Therefore, you don’t have to calculate fuel allowance.
How we simplify providing fuel allowance on your behalf?
💳 Employees get Pazcard and activate it by doing their KYC
💰 When payroll is processed monthly, the fuel wallet in Pazcard gets topped up
⛽️ Employees can use Pazcard at all petrol bunks/fuel stations across India
How easy is managing fuel allowance with us?
No bills; no manual checks
HRs don’t have to collect bills from employees for fuel transactions and validate them.
Pazcard integrates with your HRMS
Automate endorsements - employees joining, leaving, and appraised to taxable income.
Download reports from the dashboard
Real-time reports on the utilization of fuel wallet for any period.
Pazcard fuel allowances - How we impact your employees
Open network across India
We offer an open network for employees to use Pazcard at any gas station
Full visibility via Pazcare app
Check credited money in different wallets, and access card details and all transactions made
Pazcard in employees’ control
Set pin, lock the card, enable tap to pay, set transaction limit, etc. on the app
30-minute TAT for query resolution
Employees can raise queries with screenshots within the app and we will resolve them in 30 minutes