Conveyance allowance calculator for field staff
Work out the conveyance or petrol allowance per employee from kilometres travelled and your rate per km, see what your whole field team costs each month and year, and estimate how much padded claims could be adding.
Your conveyance details
Vehicle type
Use your company's policy rate. There's no single legal rate; companies set their own.
Your own estimate of how much claimed km exceed actual km. Set 0% if you don't want this.
Your conveyance cost
At 10% padding, claims for kilometres that weren't travelled would cost about
₹83,782 a year
This is an estimate for planning only, based on the figures you enter. It isn't tax or legal advice: check the tax treatment of conveyance allowances and reimbursements with your CA.
How conveyance allowance is calculated
For field staff who use their own vehicle, most companies in India reimburse conveyance per kilometre: conveyance = kilometres travelled for work × rate per km. The rate usually differs for two-wheelers and four-wheelers and is set in the company's travel or conveyance policy, often reviewed when fuel prices change.
For example, a salesman on a two-wheeler who travels 40 km a day at ₹4 per km earns ₹160 a day in conveyance, or ₹3,840 over 24 working days. Some companies pay a fixed monthly conveyance allowance instead; it's simpler, but it overpays short routes and underpays the staff who travel most.
Why claimed kilometres drift upwards
When the only record of distance is the employee's own conveyance sheet, small roundings add up: 32 km written as 40, a visit done by phone claimed as travel, or a personal trip included. Across a team and a year, a few kilometres a day becomes a significant cost, paid for distance nobody travelled.
The fix is an independent record. A field tracking app like Bazat Tracker records each employee's route and distance during working hours, so every conveyance claim can be checked against the kilometres actually travelled before it's approved.
Check claims against the real route
Bazat Tracker shows each conveyance claim next to the route and distance recorded that day, then pays approved claims through payroll. From ₹249 per user per month on yearly billing.
Conveyance allowance — FAQs
For staff using their own vehicle, most companies multiply the kilometres travelled for work by a rate per km set in their conveyance policy, usually with different rates for two-wheelers and four-wheelers. Some pay a fixed monthly allowance instead.
There is no single legal rate for private companies. Each company sets its own per-km rate in its travel policy, typically reviewed when fuel prices change. Use your policy rate in the calculator.
A fixed allowance is simpler to administer but overpays employees with short routes and underpays those who travel most. Per-km reimbursement is fairer, but only if the kilometres claimed can be verified.
Use a field tracking app that records each employee's route and distance during working hours, and compare every claim with the recorded distance before approval, allowing a small tolerance for GPS gaps.
The tax treatment depends on whether it's a fixed allowance or a reimbursement of actual official travel, and on the tax regime chosen. Check with your CA for your specific case.