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an amount of money that an employee gets in addition to his or her normal pay, because the cost of living in a particular area is high: Nurses working in the capital receive an additional 7.5 percent cost-of-living allowance. SMART Vocabulary: related words and phrases. Grants allowances.
: a sum granted as a reimbursement or bounty or for expenses. a salary that includes a cost-of-living allowance. especially : a sum regularly provided for personal or household expenses. Each child receives a weekly allowance.
Remember, the purpose of an allowance is to let young people learn how to manage money firsthand, through their own successes and failures.
You will be taxed fully on the housing allowance so add it to your salary. This entry was posted in Tax QA and tagged Salary / IRP5, Deductions, Commission, Travel Allowance.
HRA, or House Rent Allowance, is an allowance paid by the employer to the employee as part of his salary. This allowance is paid to salaried employees to ease the burden of buying a house in the metropolitan or non-metropolitan area where their place of work is located.
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What is an allowance? In business, an allowance is a payment made to an employee to cover expenses or compensate for specific working conditions. For example, many employees are given an allowance to pay for the cost of travel or entertainment. Allowances can also be compulsory for employees in certain situations.

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