Fuel Allowance

Fuel Allowance for Employees to save tax.

Swipe Pazcard to claim fuel allowance at any fuel station across India. 100% RBI-compliant. Utilize petrol allowance, saves taxes up to ₹8640/annum.


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Saved in taxes

Learn more on petrol allowance pricing and implementation

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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.

Engine capacity Amount fixed by the government for tax exemption
More than 1600 ₹2400/month
Upto 1600 CC ₹1600/month
2 wheeler ₹900/month

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.

Engine capacity Fuel allowance - Annually (₹) Tax Savings/Annum (₹)
Slab-1 (5%) Slab-2 (20%) Slab-3 (30%)
More than 1600 28,800 1,440 5,760 8,640
Upto 1600 CC 19,200 960 3,840 5,760
2 wheeler 10,800 540 2,160 3,240

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

Open network across India

We offer an open network for employees to use Pazcard at any gas station

Full visibility via Pazcare app

Full visibility via Pazcare app

Check credited money in different wallets, and access card details and all transactions made

Pazcard in employees’ control

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

30-minute TAT for query resolution

Employees can raise queries with screenshots within the app and we will resolve them in 30 minutes

Trust in our

Compliance & Certification

when it comes to your data security and privacy.


AICPA SOC 2 certified

ISO 27001 certificate

ISO 27001 certified

When I founded Wint Wealth, I knew our employees deserved the best. So we adopted both Pazcare’s insurance and their innovative Pazcard.

With Pazcard my employees are now able to save taxes on their food and fuel expenses. Whether ordering food online or buying groceries at supermarkets our employees use Pazcard on a daily basis.

Ajinkya Kulkarni
CEO & Co-Founder

Ajinkya Kulkarni

When we wanted to give more employee benefits, Pazcard was the answer to our needs.
Their competitive pricing and diverse benefits - from food, fuel, telecom, to gifts wallets elevated our employee perks. What sealed the deal was their flexible, supportive team. Now we’re offering more and better, without breaking the bank.

Umang Mehta
Sr Operations Manager


Frequently asked questions on fuel allowance

Have questions? We are here to help

Is petrol allowance taxable?

No, petrol allowance is added to salary as a tax-saving component. It is not taxable.

How to claim fuel allowance?

If your company offers fuel allowance via Pazcare, you can just use Pazcard to claim fuel allowance at any petrol bunk. You can swipe or tap to pay with Pazcard.