Transportation Allowance 

Purpose

Urban employees, public employees, housekeepers, freelances and temporary workers are entitled to bill the employer for the difference between a certain percentage (such as 6%) of the monthly basic pay and the transportation expense incurred by commuting.

The transportation means used include urban and interstate or intermunicipal transportation with the same features of urban transportation.

The employer may provide transportation tickets to the employee or pay his/her part in cash if the first option is not feasible.

These are the main features of the legal transportation allowance benefit:

●     It is not considered as part of the wage and is not incorporated to the employee’s pay

●     It is not considered in the calculation of Social Security (INSS) contribution and deposits in the Severance Premium Reserve Fund (FGTS).

●     It is not characterized as taxable income

This application component of the Human Resources module contains functions that are specific for handling data related to transportation allowance, thus meeting the needs of companies that grant such a benefit.