Supplementary allowances mean the extra allowances in the salary after calculating the employee basic wage, HRA, conveyance, & medical allowances, etc from gross salary. It is also called other allowances (or) special allowances.
Employers do not have any statutory obligation to pay it and they cannot be used for tax exemption as well.
Employers use supplementary allowances to adjust your salary to your gross wage.
How Supplementary Allowance is Calculated?
Supplementary allowances = Gross wage – (basic wage + house rent allowances + conveyance allowances + medical allowances, etc.)
Most companies don’t use the term supplementary allowances on payslips, instead, they use other/special allowances.
Are Supplementary Allowances(DA) and Dearness Allowance are Same
No, both are different, dearness allowances are given to the public sector employees as per the inflation rate in India. It will be decided every year depending on the cost of living in India.
Private companies generally don’t give dearness allowances to their employees.
Is supplementary allowance taxable or not?
You cannot use supplementary allowances to get tax exemption.
What is supplementary allowance is ICICI bank?
In a few cases, the supplementary allowance will indicate all the allowances combined.
Employees in some top positions will get this benefit. It will be decided by the management board of that particular company.
In their case the fixed salary (gross wage) = Basic wage + Supplementary allowances