leave travel allowance in tanzania

✨Limited Time Offer✨

Hire & pay globally without a local entity.

• Instantly onboard new hires anywhere in the world
• Run global payroll securely and with a single click
• Stay 100% compliant with local employment laws
• Manage benefits, work permits, timesheets, and more

Trusted by global leaders across industries

Book a demo, hire, pay and manage your talent in 160+ countries., leave policy in tanzania.

Hire and pay dedicated developers in 160+ countries

Table of Content

• Public Holidays in Tanzania
• Weekly Rest Days
• Types of Leave in Tanzania
• Manage Leave Policy and More in Tanzania With Skuad

With a population of over 64.5 million people, Tanzania is among the fastest growing economies in Africa. If you’re looking to expand your remote team, you may find the Tanzanian labor market particularly attractive.

Of course, if you want to tap that market and leverage Tanzanian talent, you’ll need to be conversant with local labor laws, including leave policy and holidays. This is critical considering Tanzanian leave laws are governed under the Employment and Labor Relations Act 2004 .

Thankfully, you don’t have to worry about these leave laws when you work with a global employment provider like Skuad , as we will handle all aspects of benefits administration and compliance. So, you can focus on the day-to-day running of your business. But to keep you informed, this post expounds on the leave policy in Tanzania.

Tanzanian workers are entitled to paid public holidays. These are usually 17 in number including the following:

• New Year's Day – January 1
• Zanzibar Revolution Day – January 12
• Good Friday – April 7
• Easter Sunday – April 9
• Easter Monday – April 10
• The Sheikh Abeid Amani Karume Day – April 7
• Union Day – April 26
• Labor Day – May 1
• Eid al-Fitr – April 21 to April 22
• Eid al-Adha – June 29
• Saba Saba – July 7
• Nane Nane (Peasants) Day – August 8
• Mwalimu Nyerere Day – October 14
• Maulid Day – October 18
• Independence Day – December 9
• Christmas Day – December 25
• Boxing Day – December 26

The dates for some holidays (especially the religious ones) are liable to change. The dates indicated above are for 2024.

Holidays that fall on Saturday or Sunday are observed on those days and not compensated. However, employers are required to double the normal rate of wages for employees who work on public holidays.

One platform to grow your global team

Hire and pay talent globally, the hassle -free way with Skuad

The law requires employers to provide 24 consecutive hours of rest every week to their employees. This should occur between the last working day of a week and the first working day of the following week. Typically, this is Sunday for most employees.

However, under special circumstances, an employer can reduce the weekly rest period of its employees to eight hours as long as the rest period is extended accordingly in the following week. In such a case, a written agreement will be required.

In addition, employers are required to offer their employees 12 consecutive hours of rest between the end of a working day and the next. Again, this can be adjusted to eight hours through a written agreement.

Keep in mind that the weekly rest days and rest hours do not apply to employees in managerial positions and emergency workers.

Tanzanian workers are entitled to various types of leaves, as shown below.

Annual Paid Leave

Employees are entitled to 28 consecutive vacation days per year. Any public holidays and weekends that fall in the period are included in the leave duration. This leave must be taken within six months when it becomes due or within 12 months if the operation of the business requires so and the employee consents. Workers are entitled to normal wages during their annual leave, and the payments are made before the leave is taken.

However, an employee must have worked for a minimum of six months to qualify for an annual paid leave in Tanzania. This doesn't apply to employees working on a seasonal basis or those that have worked several times for the same employer and whose total working period exceeds six months in that particular year.

With the employee's consent, an employer may permit or require the employee to work during their annual leave period, as long as they don’t work for two years continuously. If that’s the case, the employer will pay a one-month salary in place of the annual leave.

Also, in case of termination of employment, an employer is required to pay the employee any annual leave pay for the leave the employee has not utilized and any annual leave pay accrued in an incomplete leave cycle.

Maternity Leave

A female employee is entitled to at least 84 days of paid maternity leave if she gives birth to one child or 100 consecutive days if she gives birth to more than one child within a leave cycle of 36 months.

To qualify for paid maternity leave in Tanzania, the pregnant worker must notify the employer of her intention to take the leave at least three months before the expected delivery date. A medical certificate should accompany such notice.

The female employee can take the leave four weeks before the expected confinement date or even earlier if their medical practitioner sees it necessary for the employee's health or the health of the unborn child. Within six weeks of the child's birth, the employee is not allowed to work unless she is certified to do so by a medical practitioner.

Also, in the unfortunate incident that the newborn dies within one year of birth, the female worker is entitled to another 84 days of paid maternity leave.

An employer is only obliged to offer paid maternity leave for four terms.

Apart from maternity leave, a nursing mother is entitled to a nursing break of two hours per day. She can use this break to feed or breastfeed her child. There is no specific time when this nursing break should be utilized. So, it’s up to the employer and employee to agree on the most convenient time. Also, the law doesn’t state for how long this break should proceed. So, this is another thing that the involved parties should discuss and agree on.

It’s unfair for the employer to dismiss a female employee because she is pregnant or for any reason related to her pregnancy. The law also requires the employee to resume the same job or position she occupied before going on maternity leave and work on the same terms.

Paternity Leave

In exercising the right to equal treatment for male and female employees with family responsibilities, Tanzanian law provides for paid paternity leave to allow male employees to take care of their newborn children. The employee gets three days of paid leave in a leave cycle of thirty-six months. The leave is taken within seven days of the child's birth, and the worker must be the father of the child.

The employer may require the employer to provide proof of the child's birth before paying for paternity leave in Tanzania. In addition, the employee must have worked with the same employer for a minimum of six months in the year leading to the child's birth or be a seasonal worker for the same employer.

An employee is entitled to up to four terms of paid paternity leave in the course of their employment with the same employer.

All workers are entitled to paid sick leave for at least 126 days in a leave cycle. The employer is required to pay full wages for the first 63 days of the leave and half of the wages for the remaining 63 days .

To qualify for sick leave in Tanzania, an employee must have worked with the same employer for at least six months in the year preceding the sickness or be a seasonal employee for the same employer.

As per the Occupational Health and Safety Act 2003 , employers should not dismiss their workers during their period of sickness. But if an employee cannot continue work due to the health condition, the employer can terminate their contract by following the procedure in the Security of Employment Act, 1964 .

Compassionate Leave

There is a provision for employers to provide compassionate leave to an employee who is caring for a sick child or attending the burial of their child, spouse, parent, sibling, grandparent, or grandchild. In this regard, employees get at least four days of compassionate leave in a thirty-six-month period.

When it comes to other family or social gatherings, no provision in the law requires employers to offer any leave. However, if an employee needs some time to attend a son's wedding or a daughter’s graduation ceremony, they can request to take some days off from their annual leave

Managing leave benefits for a globally distributed workforce can be challenging. In Tanzania, the leave policy has multiple provisions. So, keeping up with all the requirements is not easy. If you have employees from multiple countries abroad, the process becomes even more complicated as each country has its own legal requirements, employee expectations, and cultural practices when it comes to leave benefits.

To avoid these challenges, most employers choose to hire and manage foreign talent with the help of global employment providers (EORs). Since the EOR acts as the legal employment of your international employees, it will take on the administrative and legal burden of hiring abroad. This includes offering a fully compliant leave benefits package that is competitive enough to attract and retain top talent.

If you’re looking to hire talent from Tanzania or any other country worldwide, book a demo with our experts today to see how we can help.

Related Topics

Employer of record in Tanzania

Employment laws in Tanzania

Payroll in Tanzania

Hire talent in Tanzania

Building a remote team?

Employ exceptional talent, anywhere, anytime!

Nov 15, 2022

What is an Employer of Record?

Editors pick

What Is Compensatory Leave? A Guide for Employers

What is unpaid time off?

Maternity leave around the world in 2023

What is the difference between statutory and non-statutory benefits?

Skuad is the best solution to hire and expand globally.

Skuad makes building globally distributed teams, quick and hassle-free.

• Publication Of The New Wage Order 2022

• March 9, 2023
• By MDM Law Group
• No Comments

The Minister of State, Prime Minister’s Office (Labour, Youth, Employment and Persons with Disability) Hon. Prof. Joyce Lazaro Ndalichako (MP) , has published Government Gazette No. 687 on the 25/11/2022 as required by the Labour Institutions Act Cap 300 R.E 2019. The New Wage Order is effective as of 1 st January 2023. It subsequently revoked the Wage Order previously published under GN NO. 196 of 2013.

A few implications to employer in Tanzania brought about by the new wage order are as follows:

• Minimum wage for each sector is provided by the Order and an employer shall not pay below the minimum prescribed wage but can obviously pay more than the minimum wage.
• Employers are now required to adjust payment of their wages below the minimum wage prescribed to conform to the new minimum wage for proper compliance.
• Employee are now entitled to leave travel assistance once in every two years of continuous service with the same employer. This is in addition to any other allowance agreed between the employer and the employee.
• Lorry drivers shall be paid an allowance for the distance travelled, out of duty station allowance, allowance for loading and unloading cargo at rates agreed between the employer and the lorry drivers.
• Any employer paying higher wages and providing more favorable terms and conditions of employment before this New Wage order should maintain them and continue to strive to provide even better terms to his employees.
• Any employment sector not mentioned is required to pay its employees a minimum of TZS 150,000/= per month.

Sector minimum wages as per the Order are as follows in brief

1. Agriculture Sector TZS 140,000/= 2. Health Sector TZS 195,000/= 3. Communication Sector is divided into two sub-sectors: i. Telecommunication TZS 500,000/= ii. Broadcasting and Mass Media, Postal and Courier Services TZS 225,000/= 4. Domestic and Hospitality Services Sector i. Domestic workers employed by Diplomats and Businessmen TZS 250,000/= ii. Domestic workers employed by entitled officers TZS 250,000/= iii. Domestic workers other than those employed by diplomats and businessmen and entitled officers who are not           residing in the household of the employer TZS 120,000/= iv.  Other domestic workers TZS 60,000 v. Large Tourist hotels TZS 300,000 vi. Medium Hotels Tshs 180,000 vii. Restaurants, Guest Houses and Bars TZS 150,000 5. Private Security Services Sector i. International and Large companies TZS 222,000/= ii. Small Companies TZS 148,000/= 6. Energy Sector i. International Companies TZS 592,000/= ii. Small Companies TZS 225,000/= 7. Transport Sector i. Aviation Services TZS 390,000/= ii. Clearing and Forwarding TZS 360,000/= iii. Inland (Ground) Transport services TZS 300,000/= 8. Construction Sector i. Contractors Class 1 TZS 420,000/= ii. Contractors Class 2-4 TZS 360,000/= iii. Contractors Class 5-7 TZS 320,000/= 9. Mining Sector i. Mining and Prospecting Licences TZS 500,000/= ii. Primary Licences TZS 300,000/= iii. Dealers Licences TZS 450,000/= iv. Brokers Licences TZS 250,000/= 10. Private Schools Services (Nursery, Primary and Secondary) TZS 207,000/= 11. Trade, Industries and Commercial Sector i. Industries and Manufacturers TZS 150,000/= ii. Financial Institutions TZS 592,000/= 12. Fishing and Marine Sector TZS 238,000/= 13. Employer who are in other sectors not mentioned in this Wage Order TZS 150,000/=

Please note that the above is merely for guidance and proper interpretation of the Order should be found in the Order for your further reference which you can down load here.

Tanzania government increases civil servants’ allowances

By  George Helahela

The Citizen Data Reporter

Mwananchi Communication Limited

What you need to know:

• The per diem of senior staff will more than double from Sh120,000 per night to Sh250,000 while that of lower level officials will increase from Sh80,000 to Sh100,000.

Dar es Salaam . The government on Friday, May 27, announced an increased travel and extra-duty allowances for its workers – the latest in a series of reviews of the public servant benefits.

The per diem of senior staff will more than double from Sh120,000 per night to Sh250,000 while that of lower level officials will increase from Sh80,000 to Sh100,000, the permanent secretary in the President's Office - Public Service Management and Good Governance (PO PSMGG), Dr Laurean Ndumbaro announced.

 “President Samia Suluhu Hassan has approved the new rates and the implementation will start in July,” said Dr Ndumbaro during the official meeting with heads of departments and units in Dodoma.

IMF to provide $150 million to Tanzania

Azam FC romp into CRDB Federation Cup final after victory over Coastal Union

"The president has also approved an increase in the level of extra duty for the lower level from Sh15,000 to Sh30,000, for the middle level from Sh20,000 to Sh40,000 and the higher level from Sh30,000 to Sh60,000," he added.

 This comes days after the government increased the minimum salaries for the public servants by 23.3 percent. The government also announced reviewed pension formula which set the lump sum payment of the retirement benefits at 33 percent for all pension funds.

 “These changes take effect on July 1, 2022 and will not interfere with the budget changes, the allocated budget will be used to implement these new rates so as to increase efficiency while serving the public,” he said.

 He added that public servant should be the part of the country’s development by fully participating in the solving communities ‘challenges

 "Public servants should be held accountable voluntarily and without coercion, be more creative to contribute to the development of the country and the well-being of the public as a whole, including ensuring that we resolve grievances facing them in time," he said.

In the headlines

IMF warns that foreign currency shortages will persist in Tanzania this year, posing risks to economic growth.

ACT Wazalendo warns of infiltration of dirty cash into opposition politics in Zanzibar

Without explicitly naming the source of the external financial interference, both the party’s National Chairman, Mr Othman Masoud Othman, and the Vice Chairman (Zanzibar), Mr Ismail Jussa Ladhu...

Strikes by Abdul Suleiman Sopu and Feisal "Fei Toto" Salum propel Azam FC into the CRDB Federation Cup final.

[Expert Hours] Join us on March 20th: Maximize Time Off While Ensuring Legal Compliance Register Now

• Tanzania Leave Laws & Holidays

Paid Time Off, Annual Leave, Sick Leave, Maternity Leave, Paternity Leave, Bereavement Leave, Jury Duty Leave, Military Leave, and Voting Leave

• Leave Laws >

Table Of Contents

Last updated on January 16, 2024 .

Public Holidays in Tanzania for 2024

If an employee works on a public holiday specified in the Public Holidays Ordinance, the employer is required to pay the employee double the employee’s basic wage for each hour worked on that day.

• Vacation/Annual Paid Leave

An employer shall grant an employee at least 28 consecutive days’ leave in respect of each leave cycle, and such leave shall be inclusive of any public holiday that may fall within the period of leave.

Rollovers and payout of unused hours

• Use-it-or-lose-it policy

Not specified by law.

• PTO payout at the termination

On termination of employment, an employer is required to pay an employee any annual leave pay for leave that the employee has not taken, and any annual leave pay accrued during any incomplete leave cycle.

Maternity Leave, Paternity Leave, Parental Leave

Maternity Leave

Female employees are entitled to 84 days’ paid maternity leave, or 100 days paid maternity leave if the employee gives birth to more than one child at the same time.

An employee is required to give notice to the employer of her intention to take maternity leave at least 3 months before the expected date of birth and such notice should be supported by a medical certificate.

A female employee is entitled to commence maternity leave at any time from four weeks before the expected date of confinement, and on an earlier date if a medical practitioner certifies that it is necessary for the employee’s health or that of her unborn child.

Female employees are not allowed to work within six weeks of the birth of their children, unless a medical practitioner certifies that they are fit to do so.

An employee is entitled to an additional 84 days paid maternity leave within the leave cycle if the child dies within a year of birth.

Paternity Leave

Employees are entitled to at least 3 days of paid paternity leave, if the leave is taken within 7 days of the birth of a child, and the employee is the father of the child.

Sick Leave, Paid Sick Leave, and Family Care Leave

An employee is entitled to sick leave for at least 126 days in any leave cycle. The first 63 days of leave are paid full wages, and the second 63 days are paid half wages.

Employer is not required to pay an employee for the sick leave if the employee fails to provide a medical certificate.

Jury Duty Leave and Voting Leave (Leave due to Public Interest)

Bereavement leave.

Employees are entitled to at least 4 days of paid leave due to the sickness or death of the employee’s child, the death of the employee’s spouse, parent, grandparent, grandchild, or sibling.

Military Leave

Not Specified by law.

Please consult your local legal counsel to learn more about Tanzania Leave Laws.

To learn more about laws in various countries, check out our  Leave Laws  page.

All materials have been prepared for general information purposes only to permit you to learn more about this region's leave laws. The information presented is not legal advice, is not to be acted on as such, and may not be current. Please contact your local legal counsel to learn more about the leave laws in your country.

OOO Generator

Excel Leave Template

Easily navigate PTO compliance, anywhere.

No credit card required. Instant set-up.

Choose your job position for customized leave law information.

I am a manager..

Looking to learn more about the leave laws for my employees.

I’m an employee.

Looking to learn what my time off rights are.

Copyrights 2024 © Vacation Tracker

Work Time & Holiday

Compensation public holiday.

Working during public holidays or rest days should be paid at 200% of the normal rate of wages. 

Employment and Labour Relations Act, No. 6,  2004

Compensatory Holidays/Rest Days

You aren't entitled by a law for a compensatory rest day for working on weekends or public holidays. Learn more about National Public Holidays.

An employee is entitled to 28 days paid annual leave, after completion of 12 months of continuous service inclusive of any public holidays that may fall during the period of leave. An employee with less than six months service is not be entitled to paid leave under the Employment and Labour Relations Act, unless the employee is employed on a seasonal basis or has worked more than once in a year for the same employer, and the total period worked for that employer exceeds six months in that year. An employer may determine the timing of annual leave provided that it is taken no later than six months after the end of the 12 month period in which the annual leave entitlement accrued or twelve months after such time if the employee has consented andthe extension is justified by the operational requirements of the employer. An employer is required to pay an employee the remuneration for annual leave (that the employee would have been paid had the employee worked during the period of leave) before the commencement of the leave.  (section 29-31of Employment and Labour Relations Act 2004). 

Employment and Labour Relations Act, No. 6,  2004  

Public Holidays

Workers are entitled to paid Festival (public and religious) holidays.  Festival holidays are announced by Tanzania Government (usually 17 in number). The public holidays are regulated under the Public Holidays Ordinance, 1966. These are New Year Day (January 01), Zanzibar Revolution Day (January 12), Maulid Day, Good Friday (March 29), Easter Monday (April 01), The Sheikh Abeid Amani Karume Day( April 07), Union celebrations (April 26), Workers Day (May 01), International Trade Fair (July 07), Peasants Day (August 08), Eid-el-Fitri(2 days), The Mwalimu Nyerere Day (October 14), Idd-El-Hajj (01 day), Republic Day (December 09), Christmas Day (December 25), Boxing Day (December 26). The Muslim festival holidays depend on the sighting of moon. Holidays falling on Saturday or Sunday will be kept on those days. Act No.10 of 1994 has been repealed and holidays falling on Saturday or Sunday shall no longer be compensated.

Weekly Rest Day

Workers are entitled to  at least 1 day of rest per week (24 consecutive hours). The weekly rest day is usually Sunday.  Employment and Labour Relations Act, No. 6,  2004

Check your Pay with the Salary Calculator tool

Fill up the Salary survey and see real wages

Already Swamped at Work?

Offload Your Tax Worries to Us ?

AI Summary to Minimize your effort

Leave Travel Allowance (LTA) - Exemption Limit, Rules, How to Claim, Eligibility & Latest Updates

Updated on : May 10th, 2024

The Income-tax Act, 1961 offers salaried individuals several tax exemptions, beyond deductions like LIC premiums and housing loan interest. While deductions reduce your total taxable income, exemptions exclude specific types of income from being taxed altogether. This allows employers to design an employee's Cost to Company (CTC) package in a tax-efficient manner.

One such exemption available to the salaried class under the law and widely used by employers is Leave Travel Allowance (LTA)/Leave Travel Concession (LTC). LTA exemption is also available for LTA received from former employer w.r.t travel after the retirement of service or termination of service. LTA can be claimed for any two years in a block of 4 years . The current block year for claiming LTA is 2022 to 2025.

Note: The tax exemption of leave travel allowance is not available in case you choose the new tax regime .

What is Leave Travel Allowance (LTA)?

Leave Travel Allowance/Leave Travel Concession is a type of allowance given by an employer to their employee for travelling to any place in India: either on leave, after retirement or after the termination of his service. Though it sounds simple, many factors need to be kept in mind before you plan to claim an LTA exemption. Income tax provision has laid down rules for claiming exemption of LTA which are provided below.

Note: The red arrow shows the lower of the two amounts will be exempted. For instance, if you travel by air, the exemption amount will be either your actual travel costs or the cost of an economy class ticket, whichever is lower. The journey should be taken through the shortest route to the destination. 

Who Can Claim LTA?

Only individuals can claim LTA for travel costs incurred for themselves and their family (Spouse, children, wholly or mainly dependent siblings, parents)

Conditions for Claiming LTA

Let us understand the conditions/requirements for claiming the exemption:

• Actual journey is a must to claim the exemption
• Only domestic travel is considered for exemption, i.e., travel within India. No international travel is covered under LTA/LTC
• The exemption for travel is available for the employee alone or with his family, where ‘family’ includes the employee’s spouse, children and wholly or mainly dependent parents, brothers, and sisters of the employee. 
• Further, such an exemption is not available for more than two children of an employee born after 1 October 1998. Children born before 1 October 1998 do not have any restrictions. Further, in cases of multiple births on a second occasion after having one child is also not affected by this restriction.

Amount of LTA/LTC Exemption

The exemption is available only on the actual travel costs i.e., the air, rail or bus fare incurred by the employee. No expenses such as local conveyance, sightseeing, hotel accommodation, food, etc., are eligible for this exemption. The exemption is also limited to LTA provided by the employer.

For example, if LTA granted by the employer is Rs 30,000, and the actual travel cost incurred by the employee is Rs 20,000, then only Rs 20,000 will be available as an exemption and the balance of Rs 10,000 would be included in taxable salary income.

Exemption w.r.t Various Modes of Transport

Can lta exemption be claimed on every vacation.

No, an LTA exemption is available for only  two journeys performed in a block of four calendar years .

A block year is different from a financial year and is decided by the Government for LTA exemption purposes. It comprises 4 years each. The very first 4-year block commenced in 1986. The list of block years is 1986-1989, 1990-93, 1994-97, 1998-2001, 2002-05, 2006-09, 2010-13 and so on. The block applicable for the current period is  2022-25. The previous block was the calendar year 2018-21.

Carryover of Unclaimed LTA/LTC

In case an employee has not availed exemption with respect to one or two journeys in any of the block of 4 years, he is allowed to carryover such exemption to the next block provided he avails this benefit, in the first calendar year of the immediately succeeding block. 

Consider the below example for a better understanding:

• Where carry over exemption is claimed in the first calendar year of the immediately succeeding block

• Where carry over exemption is not claimed in the first calendar year of the immediately succeeding block

Procedure to Claim LTA

The procedure to claim LTA is generally employer specific. Every employer announces the due date within which LTA can be claimed by the employees and may require employees to submit proof of travel such as tickets, boarding pass, invoice provided by travel agent etc., along with the mandatory declaration. Though it is not mandatory for employers to collect proof of travel, it is always advisable for employees to keep copies for his/her records and also to submit them to the employer based on the LTA policy of the company to tax authorities on demand.

Multi-Destination Journey

Income tax provision provides exemption w.r.t travel cost incurred on leave to any place in India. Conditions pertaining to the mode of transport also refer to the place of ‘origin’ to the place of ‘destination’ and the route which must be the shortest available route.

Hence, if an employee travels to different places in a single vacation, the exemption can only be availed for the travel cost eligible from the place of origin to the farthest place in the vacation by the shortest possible route.

LTA Exemption for Vacation on Holidays

Many organisations that go strictly by the wordings of the income tax provision are allowing employees to claim LTA only if the employee applies for leaves and travel during that time. Such organisations may reject LTA claims for travel on official holidays or weekends. 

Also read about: Basic Salary UAN Login Last Date to File ITR   Section 115BAC of Income Tax Act   Income Tax Deductions List How to e verify ITR   Annual Information Statement (AIS) Section 80D   Home Loan Tax Benefit Budget 2023 Highlights House Rent Allowance (HRA)

Frequently Asked Questions

The amount of LTA/LTC exemption depends on the LTA/LTC component in your compensation package or CTC. You can furnish proof of travel within the block period and claim up to the amount prescribed in your CTC.

The latest block period of four years is from 1 January 2022 until 31 December 2025.

You can claim LTA/LTC exemption only for one trip in one calendar year.

You can claim LTA/LTC benefit for the travel costs of yourself and your family consisting of your spouse, children, dependent parents, brothers, and sisters of the employee.

No, LTC is taxable in case of new tax regime and exempted if chosen to pay tax under old tax regime by fulfilling the required criteria.

Exemption will be available in respect of 2 journeys performed in a block of 4 calendar years.

Yes, you can avail LTC in current block (2022-2025), if you have not availed LTC in previous block. (2018-2021). Where such travel concession or assistance is not availed by the individual during any block of 4 calendar years, one such un-availed LTC will be carried forward to the immediately succeeding block of 4 calendar years and will be eligible for exemption. 

Below example gives you clear understanding :

Example : An employee does not avail any LTC for the block 2018-21. He is allowed to carry forward maximum one un-availed LTC to be used in the succeeding block of 2022-25. Accordingly, if he avails LTC in April, 2023, the same will be treated as having availed in respect of the block 2018-2021. Therefore, he will be eligible for exemption in respect of that journey and two more journeys can be further availed in respect of the block of 2022-25.

Illustration : Mr. D went on a holiday on 25.12.2023 to Delhi with his wife and three children (one son – age 5 years; twin daughters – age 3 years). They went by flight (economy class) and the total cost of tickets reimbursed by his employer was 60,000 (45,000 for adults and 15,000 for the three minor children). Compute the amount of LTC exempt if Mr. D chose to pay taxes under old regime.

Solution :  Since the son’s age is more than the twin daughters, Mr. D can avail exemption for all his three children. The restriction of two children is not applicable to multiple births after one child. The holiday being in India and the journey being performed by air (economy class), the entire reimbursement met by the employer is fully exempt in the hands of Mr. D, since he chose to pay taxes under the old regime.

In the above illustration, will there be any difference if among his three children the twins were 5 years old and the son 3 years old? 

Since the twins’ age is more than the son, Mr. D cannot avail for exemption for all his three children. LTC exemption can be availed in respect of only two children. 

Taxable LTC = 15,000 × 1/3 = 5,000. 

LTC exempt would be only 55,000 (i.e. 60,000 – 5,000).

About the Author

Ektha Surana

Multitasking between pouring myself coffees and poring over the ever-changing tax laws. Here, I've authored 100+ blogs on income tax and simplified complex income tax topics like the intimidating crypto tax rules, old vs new tax regime debate, changes in debt funds taxation, budget analysis and more. Some combinations I like- tax and content, finance & startups, technology & psychology, fitness & neuroscience. Read more

Public Discussion

Get involved!

Share your thoughts!

Quick Summary

Was this summary helpful.

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company Policy Terms of use

Data Center

SSL Certified Site

128-bit encryption

Do it online

• Online Auction
• Customs license management
• EFDMS Public Portal
• Property Registration
• Electronic Tax Stamps Management System

Quick links

• E-Fiscal Devices (EFD)
• Objections & Appeals
• Paying taxes
• Tax calendar
• Starting business
• Interest, Penalties & Offences
• List of EFD Suppliers
• List of tax Consultants
• List of Licensed Customs Agents (CFAs)
• List of Authorized Economic Operators (AEO)

Related Links

Institute of Tax Administration

Ministry of Finance

Ministry of Industry, Trade and Investment

Tanzania Ports Authority

African Tax Administration Forum

Kenya Revenue Authority

Uganda Revenue Authority

Rwanda Revenue Authority

Office Burundais des Recettes

South African Revenue Service

Tax Club Corner

I ntroduction  

News & Updates

• You are here:  

What should be included in determining the income from employment?

• " onclick="window.open(this.href,'win2','status=no,toolbar=no,scrollbars=yes,titlebar=no,menubar=no,resizable=yes,width=640,height=480,directories=no,location=no'); return false;" rel="nofollow"> Print

Gains or profits included in calculating income from employment

The employment income includes;

a)    payments of wages, salary, payment in lieu of leave, fees, commissions, bonuses, gratuity or any subsistence travelling entertainment or other allowance received in respect of employment or service rendered

b)    payments providing any discharge or reimbursement of expenditure incurred by the individual or an associate of the individual

c)     payments for the individual's agreement to any conditions of the employment

d)     retirement contributions and retirement payments

e)     payment for redundancy or loss or termination of employment

f)     other payment made in respect of employment including benefits in kind quantified in accordance to the prescribed rules

g)     other amounts as may be required to be included

 h)     annual director’s fees payable to a director other than a full time service director.

Gains or profits excluded from calculation of income from employment

The following gains or profits from employment are excluded in calculating income from employment:

(a) Exempt amounts and final withholding payments;

(b) On premises cafeteria services that are available on a non-discriminatory basis;

(c) Medical services, payment for medical services, and payments for insurance for medical services to the extent that the services or payments are -

(i) Available with respect to medical treatment of the individual, spouse of the individual and up to four of their children; and

(ii) made available by the employer (and any associate of the employer conducting a similar or related business) on a non-discriminatory basis;

(d) Any subsistence, travelling, entertainment or other allowance that represents solely the reimbursement to the recipient of any amount expended by him wholly and exclusively in the production of his income from his employment or services rendered;

(e) Benefits derived from the use of motor vehicle where the employer does not claim any deduction or relief in relation to the ownership, maintenance or operation of the vehicle;

(f) Benefit derived from the use of residential premises by an employee of the Government or any institution whose budget is fully or substantially out of Government budget subvention;

(g) Payment providing passage of the individual, spouse of the individual and up to four of their children to or from a place of employment which correspond to the actual travelling cost where the individual is domiciled more than 20 miles from the place of employment and is recruited or engaged for employment solely in the service of the employer at the place of employment;

(h) Retirement contributions and retirement payments exempted under the Public Service Retirement Benefits Act;

(i) Payment that it is unreasonable or administratively impracticable for the employer to account for or to allocate to their recipients;

(j) Allowance payable to an employee who offers intramural private services to patients in a public hospital; and

(k) Housing allowance, transport allowance, responsibility allowance, extra duty allowance, overtime allowance, hardship allowance and honoraria payable to an employee of the Government or an institution the budget of which is fully or substantially paid out of Government budget subvention.

Calculators and tools.

• PAYE Mainland
• PAYE Zanzibar
• Calculator & Tool for Motor Vehicles
• Double Taxation Agreements
• Decided tax Cases
• Publications
• Tax collection statistics
• Audited Financial Statements
• System User Guides

Security Alert May 17, 2024

Worldwide caution, update may 10, 2024, information for u.s. citizens in the middle east.

• Travel Advisories |
• Contact Us |
• MyTravelGov |

Find U.S. Embassies & Consulates

Travel.state.gov, congressional liaison, special issuance agency, u.s. passports, international travel, intercountry adoption, international parental child abduction, records and authentications, popular links, travel advisories, mytravelgov, stay connected, legal resources, legal information, info for u.s. law enforcement, replace or certify documents.

Before You Go

Learn About Your Destination

While Abroad

Emergencies

Share this page:

Travel Advisory July 31, 2023

Tanzania - level 2: exercise increased caution.

Reissued with obsolete COVID-19 page links removed.

Exercise increased caution in Tanzania due to crime, terrorism, and targeting of LGBTI persons .  Some areas have increased risk.  Read the entire Travel Advisory.

Reconsider Travel To:

• Mtwara Region in southern Tanzania due to the threat of terrorism.

Country Summary : Violent crime, such as assault, sexual assault, robberies, mugging, and carjacking, is common.  Local police may lack the resources to respond effectively to serious crime.

Terrorist groups could attack in Tanzania with little or no warning, targeting embassies, police stations, mosques, and other places frequented by Westerners. Please see the additional information below regarding the increased threat of terrorism in Mtwara Region.

Members of the LGBTI community have been arrested, targeted, harassed, and/or charged with unrelated offenses.  Individuals detained under suspicion of same-sex sexual conduct could be subject to forced anal examinations.

Read the country information page for additional information on travel to Tanzania.

If you decide to travel to Tanzania:

• Always carry a copy of your U.S. passport and visa and keep original documents in a secure location.
• Be aware of your surroundings.
• Do not leave your food or drink unattended.
• Stay alert in all locations, especially those frequented by Westerners.
• Avoid public displays of affection particularly between same-sex couples.
• Enroll in the Smart Traveler Enrollment Program (STEP) to receive Alerts and make it easier to locate you in an emergency.
• Follow the Department of State on Facebook and Twitter.
• Review the Country Security Report for Tanzania.
• Prepare a contingency plan for emergency situations. Review the Traveler’s Checklist .
• Visit the CDC page for the latest Travel Health Information related to your travel.

Mtwara Region in southern Tanzania – Level 3: Reconsider Travel There have been reports of violence in Mtwara Region in southern Tanzania. Increased activity by extremists along the southern border has led to attacks against both government and civilian targets.

Embassy Messages

View Alerts and Messages Archive

Quick Facts

6 months. Passports with the “X” gender marker are not accepted.

Yellow fever required if traveling from a country where the disease is endemic.

Travelers must declare international currency valuing more than $10,000 on both entrance to and exit from Tanzania. Non-resident American citizens may not import or export Tanzanian Shillings (TSH).

Non-residents (except Kenyans and Ugandans) may not import or export Tanzanian Shillings (TZS)

Embassies and Consulates

U.s. embassy dar es salaam.

686 Old Bagamoyo Road, Msasani, Dar es Salaam, Tanzania Telephone:  +(255) 22-229-4000 Emergency After-Hours Telephone: +(255) 22-229-4000, dial '1' for an emergency operator Email:   [email protected]

Destination Description

The United Republic of Tanzania is a constitutional republic located in East Africa. It enjoys a relatively stable economy; it is resource-rich and has a growing tourist industry. Tourist facilities are centered around the “northern and southern circuit” of National Parks which include the Serengeti, Ngorongoro Crater, Kilimanjaro, Arusha, Nyerere, and Ruaha as well as the islands in the semi-autonomous Zanzibar archipelago.

See the Department of State’s Fact Sheet on Tanzania for information on U.S.-Tanzania relations. 

Entry, Exit and Visa Requirements

Visas: Tourists must obtain a one-year multiple entry visa for $100. Applicants can apply and pay online for an e-visa in advance of travel. If approved, the applicant will receive a “grant notice” via email which they present to the Immigration Officer upon arrival at the airport in Tanzania. U.S. citizens can also obtain a tourist visa upon arrival.

Volunteer work is prohibited on a tourist visa. Volunteers must obtain a Class “C” Residence Permit .

Contact the Tanzanian Immigration Services Department for information on obtaining a residence permit .

Obtain the latest information on visas from the Embassy of Tanzania in Washington D.C.

Information about dual nationality or the prevention of international child abduction can be found on our website. For further information about customs regulations, please read our Customs Information page . Please note that Tanzania does not permit dual citizenship for adults.

Entry Requirements:

• Passport with at least one blank page and six months’ validity.
• Visitors must present a round-trip ticket and be prepared to demonstrate they have sufficient funds for their stay.
• Proof of yellow fever vaccination is required for all travelers arriving from countries where the disease is endemic, including 12+ hour airport transit and layovers. The Embassy of Tanzania has further information, including on waivers for this requirement.

Information about recommended vaccinations and medications can be found on the CDC’s website .

HIV/AIDS restrictions: The U.S. Department of State is unaware of any HIV/AIDS entry restrictions for visitors to, or foreign residents of, Tanzania.

Safety and Security

You should review the Department of State’s Travel Advisory for Tanzania before considering travel to Tanzania.

Terrorism: Travelers should be aware that terrorists are increasingly using less sophisticated methods of attack – including knives, firearms, and vehicles – to more effectively target crowds. Frequently, their aim is unprotected or vulnerable targets, such as:

• High-profile public events (sporting contests, political rallies, demonstrations, holiday events, celebratory gatherings, etc.) 
• Hotels, clubs, and restaurants frequented by tourists 
• Places of worship 
• Schools 
• Parks 
• Shopping malls and markets 
• Public transportation systems (including subways, buses, trains, and scheduled commercial flights) 

There have been reports of violence in the Mtwara region in southern Tanzania. Increased activity by extremists along the southern border has led to attacks against both government and civilian targets.

For more information, see our Terrorism page.

Crime: Crime in Tanzania is a regular occurrence and Tanzanian authorities have limited capacity to deter and investigate such acts.

• Home invasions, sometimes violent, have been reported in Arusha and Dar es Salaam.
• Pickpockets and bag snatchers target Westerners in tourist areas.

International Financial Scams: See the  Department of State  and the  FBI  pages for information on scams.

Victims of Crime: If you or someone you know becomes the victim of a crime abroad, you should contact the local police and the U.S. embassy.

• Replace a stolen passport.
• Help you find appropriate medical care if you are the victim of violent crimes such as assault or rape.
• Put you in contact with the appropriate police authorities, and if you want us to, contact family members or friends.
• Direct you to local attorneys, although it is important to remember that local authorities are responsible for investigating and prosecuting the crime.

Domestic Violence: U.S. citizen victims of domestic violence may have difficulty accessing sufficient social and/or medical support and local police have limited resources. The Embassy can provide information on the limited resources available in Tanzania to support survivors of domestic violence.

Sexual Assault: is a risk for all U.S. citizens and especially for women travelers.

• Victims of sexual assault may have difficulty accessing sufficient social and/or medical support.
• Local police have limited resources and investigations are often not completed. Prosecutions are very rare.

The local equivalent to the “911” emergency line in Tanzania is “111”, “112”, and “+255 787 668 306” however response times can be very slow and service unreliable.

Please see our information for victims of crime , including possible victim compensation programs in the United States.

Local Laws & Special Circumstances

Criminal Penalties: While you are traveling in Tanzania, you are subject to its laws. Foreign laws and legal systems can be vastly different from our own. Persons violating Tanzania’s laws, even unknowingly, may be expelled, arrested, or imprisoned.

• Penalties for possessing, using, or trafficking in illegal drugs in Tanzania are severe, and convicted offenders can expect long jail sentences and heavy fines.
• Photographing military installations is forbidden. Individuals have been detained and/or had their cameras confiscated for taking photos of hospitals, schools, bridges, industrial sites and airports. Sites where photography is prohibited are not always marked.
• It is illegal to import or export an animal or animal part without export certification from the Tanzanian government.
• It is illegal to gather, collect, or remove flora or fauna, including seashells, ebony or mpingo wood.

Furthermore, certain acts of U.S. citizens overseas are prosecutable as crimes in the United States even if they are not illegal under the local law. For examples, see our website on  crimes against minors abroad .

Arrest Notification: If you are arrested or detained, ask police or prison officials to notify the U.S. Embassy immediately. See our webpage for further information.

What to Wear: While visiting Tanzania, you should dress modestly outside of the hotel or resort. Entering public areas in a bathing suit or in clothes that would be deemed immodest according to the local community may attract negative public attention.

Ramadan: During the holy month of Ramadan, when Muslims fast during daylight hours, U.S. citizens should be mindful and respectful of local culture and religious views.

Faith-Based Travelers: See our following webpages for details:

• Faith-Based Travel Information
• International Religious Freedom Report – see country reports
• Human Rights Report – see country reports
• Hajj Fact Sheet for Travelers
• Best Practices for Volunteering Abroad

LGBTQI+ Travelers: Consensual same-sex sexual relations are a criminal offense in Tanzania. Those convicted may be sentenced to up to 30 years in prison. Authorities use the penal code to intimidate and arrest individuals based on their real or perceived sexual orientation or gender identity. Individuals detained under suspicion of same-sex sexual conduct may be subject to or threatened with forced anal examinations.

Members of the LGBTQI+ community may be denied entry to Tanzania by immigration authorities (including on Zanzibar) or once admitted may be targeted, harassed, and/or charged with unrelated offenses.

Public displays of affection between persons of the same sex may be met with harassment or violence. Non-governmental organizations that support the LGBTQI+ community and their staff may also be targeted, harassed, or have staff members detained by local authorities.

For more detailed information about respect for the human rights of LGBTQI+ persons in Tanzania, you may review the State Department’s annual Country Reports on Human Rights Practices . For further information specific to LGBTQI+ travel, please read our LGBTQI+ Travel Information page .

The Tanzanian government does not accept passports with the “X” gender marker. This applies to travel to, within, or through Tanzania.

Accessibility: Individuals may find accessible accommodation challenging to find in Tanzania. Sidewalks are nearly non-existent and there are frequent power outages.

Medical Emergencies, Ambulance Services:

• Are unreliable and/or not easily accessible throughout the country. Travelers may prefer to take a taxi or private vehicle to the nearest major hospital.
• Not equipped with state-of-the-art medical equipment.
• Click  here  to access the list of medical facilities in Tanzania from the Embassy website. 

The Department of State, U.S. embassies and U.S. consulates do not pay medical bills. Be aware that U.S. Medicare/Medicaid does not apply overseas. Most hospitals and doctors overseas do not accept U.S. health insurance.

Medical Insurance: Make sure your health insurance plan provides coverage overseas, including in Tanzania. Most care providers overseas only accept cash payments. See our webpage for more  information on insurance providers for overseas coverage . We strongly recommend  supplemental insurance  to cover medical evacuation. Visit the U.S. Centers for Disease Control and Prevention for more information on type of insurance you should consider before you travel overseas.

Prescription Medication: Always carry your prescription medication in original packaging with your doctor’s prescription.  Check with the Embassy of Tanzania in Washington D.C. to ensure the medication is legal in Tanzania.

You can find detailed information on vaccinations and other health precautions on the CDC website .  For information about outbreaks of infectious diseases abroad, consult the World Health Organization (WHO) website , which contains additional health information for travelers, including detailed country-specific health information .

Water Quality & Food Safety

• In many areas, tap water is not potable. Bottled water and beverages are generally safe, although you should be aware that many restaurants and hotels serve tap water unless bottled water is specifically requested. Be aware that ice for drinks may be made using tap water.
• If ascending Mount Kilimanjaro or other mountains in Tanzania, be aware of the symptoms of altitude sickness, and take precautions before you travel.
• Visit the U.S. Centers for Disease Control and Prevention website for more information about Travel to High Altitudes.

Adventure Travel

Visit the U.S. Centers for Disease Control and Prevention website for more information about Adventure Travel.

Travel and Transportation

TRAFFIC SAFETY AND ROAD CONDITIONS: While in Tanzania, you may encounter dangerous road conditions. Road accidents are a major threat to travelers in Tanzania. Roads are poorly maintained and often bumpy, potholed, and unpaved. Even good roads may deteriorate quickly due to weather conditions. Travelers should note that traffic moves on the left side of the road, which can be very disorienting to those not accustomed to it.

• Beware of vehicles traveling at excessive speed, and unpredictable local driving habits.
• Many vehicles are poorly maintained and lack basic safety equipment.
• Heavy traffic jams, either due to rush hour or because of accidents, are common.
• Vehicles may cross the median strip and drive against the flow of traffic.
• During the rainy season ((late March to mid-June and mid-November to mid-December), many roads in Tanzania, both urban and rural, are passable only with four-wheel-drive vehicles.
• Please refer to our Road Safety page for more information.

Traffic Laws: Tanzanian law requires all motor vehicle operators to be in possession of a valid driver’s license. Persons staying in Tanzania for fewer than six months may use a valid U.S. driver’s license after validation by local traffic authorities, or an international driver’s license. Persons intending to remain in Tanzania for more than six months are required to obtain a Tanzanian driver’s license. All vehicles are required to carry third-party liability insurance and to post the decal in the front window.

Public Transport:

• Use taxis or hire a driver from a reputable source.
• Travelers should avoid using public buses known as “dala-dalas”; three-wheeled taxis known as “bajajis”; and motorcycle taxis called “boda-bodas”. These modes of transport are often poorly maintained and ignore traffic rules.
• When traveling to Zanzibar by ferry, use the high-speed ferry and purchase your tickets from inside the ferry terminal or online in advance. Tickets should include your name, date of travel, and class of travel.

Aviation Safety Oversight: As there is no direct commercial air service to the United States by carriers registered in Tanzania, the U.S. Federal Aviation Administration (FAA) has not assessed the government of Tanzania's   Civil Aviation Authority for compliance with International Civil Aviation Organization (ICAO) aviation safety standards. Further information may be found on the  FAA's safety assessment page .

Maritime Travel:  Mariners planning travel to Tanzania should also check for U.S. maritime advisories and alerts . Information may also be posted to the U.S. Coast Guard homeport website  and the  NGA broadcast warnings website .

For additional travel information

• Enroll in the  Smart Traveler Enrollment Program (STEP)  to receive security messages and make it easier to locate you in an emergency.
• Call us in Washington, D.C. at 1-888-407-4747 (toll-free in the United States and Canada) or 1-202-501-4444 (from all other countries) from 8:00 a.m. to 8:00 p.m., Eastern Standard Time, Monday through Friday (except U.S. federal holidays).
• See the  State Department’s travel website  for the  Worldwide Caution  and  Travel Advisories .
• Follow us on  Twitter  and  Facebook .
• See  traveling safely abroad  for useful travel tips.

Review information about International Parental Child Abduction in Tanzania . For additional IPCA-related information, please see the International Child Abduction Prevention and Return Act ( ICAPRA ) report.

Adoption Notices

Travel advisory levels, assistance for u.s. citizens, tanzania map, learn about your destination, enroll in step.

Subscribe to get up-to-date safety and security information and help us reach you in an emergency abroad.

Recommended Web Browsers: Microsoft Edge or Google Chrome.

Make two copies of all of your travel documents in case of emergency, and leave one with a trusted friend or relative.

Afghanistan

Antigua and Barbuda

Bonaire, Sint Eustatius, and Saba

Bosnia and Herzegovina

British Virgin Islands

Burkina Faso

Burma (Myanmar)

Cayman Islands

Central African Republic

Cote d Ivoire

Curaçao

Czech Republic

Democratic Republic of the Congo

Dominican Republic

El Salvador

Equatorial Guinea

Eswatini (Swaziland)

Falkland Islands

France (includes Monaco)

French Guiana

French Polynesia

French West Indies

Guadeloupe, Martinique, Saint Martin, and Saint Barthélemy (French West Indies)

Guinea-Bissau

Isle of Man

Israel, The West Bank and Gaza

Liechtenstein

Marshall Islands

Netherlands

New Caledonia

New Zealand

North Korea (Democratic People's Republic of Korea)

Papua New Guinea

Philippines

Republic of North Macedonia

Republic of the Congo

Saint Kitts and Nevis

Saint Lucia

Saint Vincent and the Grenadines

Sao Tome and Principe

Saudi Arabia

Sierra Leone

Sint Maarten

Solomon Islands

South Africa

South Korea

South Sudan

Switzerland

The Bahamas

Timor-Leste

Trinidad and Tobago

Turkmenistan

Turks and Caicos Islands

United Arab Emirates

United Kingdom

Vatican City (Holy See)

External Link

You are about to leave travel.state.gov for an external website that is not maintained by the U.S. Department of State.

Links to external websites are provided as a convenience and should not be construed as an endorsement by the U.S. Department of State of the views or products contained therein. If you wish to remain on travel.state.gov, click the "cancel" message.

You are about to visit:

Transport and subsistence allowance after resignation

In January 2019 our Company employed a civil engineer on a two-year renewable contract. He was recruited in Dar es Salaam and posted to Morogoro where we have a branch. Two weeks ago he voluntarily resigned giving a 24 hour notice. He paid the Company a 1-month remuneration in lieu of notice according to the employment contract and the labour law. 2 weeks after depositing the notice pay to the Company’s bank account, he lodged a claim for transport allowance for himself, family and personal effects from Morogoro to Dar es Salaam. He is also claiming to be paid subsistence allowance from the date of resignation to the date he will be transported to  Dar es Salaam or given the transport allowance. Are his claims genuine? What does the law say on these claims? TR, Morogoro

Rule 3(1)(a) and (2)(d) of the Employment and Labour Relations (Code of Good Practice) Rules, 2007 (Rules) recognises resignation as one of the forms of termination of employment contracts. However, rule 6(1) of the Rules imposes a condition that an employee serving a fixed term contract should not resign before the expiry of his fixed contract term unless he gets the employer to agree to his resignation or he proves that the employer has materially breached the contract to the extent of forcing him to resign.

If an employee resigns without consent of the management, he is taken to have breached the contract and cannot be entitled to a repatriation cost or any other terminal dues including subsistence allowance pending the repatriation to his place of recruitment. But if an employee seeks and obtains consent of the management to resign before the expiration of his fixed term contract, his resignation is treated as a lawful resignation and for that matter he is entitled to a repatriation or transport cost from place of termination to place of recruitment just like a resignation by an employee with unspecified term contract.

The employee’s right to a repatriation or transport cost from his work station to the place of recruitment is provided under section 43 and 44(1)(f) of the Employment and Labour Relations Act, 2004. The employer has three ways of transporting the employee to the place of recruitment. The employer can use the Company’s car to transport the employee, his family and personal effects to the place of recruitment. The second method is hiring a car for the employee to repatriate him. The third way is by paying the employee a transport allowance equal to a bus fare up to the bus station which is nearest to the employee’s place of recruitment. The bus fare covers the employee, his spouse and children. The law is silent on the number of spouses or children covered.

Taking into account the discussions above, apart from the transport cost, the employer has to pay the employee subsistence allowance between the date of resignation and the date of transporting him to the place of recruitment. The law does not provide the rate of subsistence allowance but we think it should be equal to the daily basic wage of the employee.

We use cookies to give you the best online experience. Please let us know if you agree to all of these cookies.

Cookie and Privacy Settings

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, refuseing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.

If you do not want that we track your visist to our site you can disable tracking in your browser here: Click to enable/disable Google Analytics tracking.

We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings: Click to enable/disable Google Webfonts.

Google Map Settings: Click to enable/disable Google Maps. Google reCaptcha Settings: Click to enable/disable Google reCaptcha.

Vimeo and Youtube video embeds: Click to enable/disable video embeds.

You can read about our cookies and privacy settings in detail on our Privacy Policy Page.

Would you like to view this website in another language?

How Leave Travel Allowance Works: A Complete Guide

• Written by: Rinaily Bonifacio
• Last updated: 25 April 2024

This guide will walk you through what Leave Travel Allowance (LTA) is, why it’s beneficial to offer it, and who qualifies for it under U.S. labor laws.

Table of contents

What is leave travel allowance?

Who is eligible to receive lta, leave travel allowance rules for different modes of transport, components of leave travel allowance, how to claim leave travel allowance, frequently asked questions.

Leave Travel Allowance (LTA) is a type of benefit employers can offer to their employees to cover travel costs for vacations. Essentially, it's a way to encourage employees to take time off and travel, helping them refresh and return to work re-energized.

This allowance typically covers travel expenses incurred by the employee during their leave. Importantly, under the Income Tax Act, certain conditions allow this allowance to be tax-free, which means employees can claim LTA tax exemption on travel expenses without increasing their net taxable income.

Should you provide leave travel allowance to your employees?

Offering leave travel allowance can be a smart move for your business. Here’s why:

Boosts employee morale : Providing LTA shows that you care about your employees' well-being outside of work. This can boost job satisfaction and improve company loyalty.

Tax benefits : Both you and your employees can enjoy tax exemptions on travel costs. This means while your employees save on taxes, your company can also benefit from reduced payroll taxes.

Attracts talent : In competitive job markets, offering LTA can make your company stand out. Potential hires often look for benefits that enhance work-life balance , and LTA does exactly that.

Eligibility for leave travel allowance is generally outlined by an employer’s policies. Typically, full-time employees are eligible for LTA, but there are nuances depending on the company's specific regulations and the agreements in place. Here are some common criteria used to determine eligibility:

Employment status : Full-time employees are usually eligible, whereas part-time or temporary employees may not be.

Length of service : Some companies require employees to have been with the company for a certain period, e.g., at least one year.

Performance metrics : In some cases, eligibility might be tied to meeting certain performance goals or criteria.

Conditions under which LTA is granted

LTA is not automatically given for any travel. Here are the conditions typically required for an employee to claim leave travel allowance:

Travel with dependents : Often, LTA can be claimed when traveling with family members such as spouses, children, or dependent parents.

Approved leave duration : The travel must occur during a period of approved leave from the company. The duration of this leave might also be specified in the LTA policy.

Domestic travel : Typically, LTA covers domestic travel expenses. International travel may not qualify unless specified by the employer.

LTA offers tax benefits on travel expenses under certain conditions as per the Income Tax Act. These benefits, however, can vary based on the mode of transport used during travel. Here's an overview of how LTA rules apply to different modes of transport:

1. Air travel

Eligibility : LTA covers economy class airfare for domestic flights.

Coverage : Only the airfare for the shortest route to the destination is eligible.

Documentation : Airline tickets and boarding passes must be preserved and submitted to claim LTA.

2. Rail travel

Eligibility : All classes of train travel within the country are covered by LTA.

Coverage : Like air travel, only the fare for the shortest route is considered.

Documentation : Train tickets or e-tickets, along with proof of journey such as reservation slips, are required for LTA claims.

3. Road travel

Eligibility : If the destination is connected by rail but the journey is performed by other modes of road transport, LTA covers first-class or deluxe class fare of such transport, typically up to the amount that would have been incurred if the journey had been undertaken using the highest class of train available to the destination.

Coverage : For places not connected by rail, LTA is allowed as per the first-class or deluxe rate of fare by the shortest route to that place.

Documentation : Bus tickets, taxi receipts, or fare details are necessary when claiming LTA.

4. Waterways

Eligibility : Travel by cruise or ship within the country can also be claimed, but it’s less common.

Coverage : As with other forms, only the fare for the shortest route is eligible.

Documentation : Tickets or proof of travel expenses incurred are needed.

Special considerations:

Combination of modes : In cases where multiple modes of transport are used to reach the destination, each segment of the trip needs to be documented separately, and each needs to adhere to the LTA rules applicable to that mode of transport.

Non-covered expenses : Expenses related to accommodation, meals, and personal entertainment are not covered under LTA, regardless of the transport mode.

International travel : Typically, LTA only covers domestic travel expenses. International travel is generally not eligible for LTA unless specified by the employer.

These rules aim to provide a framework for employees and employers to understand what expenses can be claimed and the necessary documentation needed to support such claims.

Leave travel allowance is a beneficial component in an employee's salary package that helps cover costs associated with travel during leave periods. This section will delve into what types of expenses LTA can cover, what it typically does not include, and the limits and caps that apply to these allowances.

What expenses are covered under LTA?

LTA mainly aims to cover the actual travel costs incurred by an employee during official holidays or leave periods. The primary expenses that can be claimed under LTA include:

Airfare : LTA covers economy class airfare for domestic travel as per the conditions outlined by the Income Tax Act 1961.

Rail and bus fares : Tickets for trains and state-operated buses are eligible for LTA claims, providing they are the shortest routes to the destination.

Taxi fares : In cases where public transportation is not available, taxi fares between the nearest transport hub and the destination can be covered.

It’s important for employers and employees to keep receipts, boarding passes, and other proof of travel, as these are required by tax authorities to claim LTA exemption on these travel expenses.

What is not included in LTA?

While LTA covers a range of travel-related expenses, there are specific costs that are generally excluded:

Accommodation : Hotel stays and other types of lodging are not covered under LTA.

Meals and personal expenses : Food, shopping, and other personal expenditures incurred during travel are not eligible for LTA.

International travel : Only domestic travel within the country is eligible for LTA claims. Expenses for international trips are not included under standard LTA policies.

Housing loan interest : Any interest paid on housing loans during the travel period cannot be claimed as part of LTA.

Understanding these exclusions is crucial for effectively managing and claiming LTA.

Limits and caps on LTA amounts

The limits on LTA are typically defined by the employer's policy and the guidelines set forth by the Income Tax Department. Some common stipulations include:

Frequency of claims : LTA can generally be claimed twice in a block of four calendar years. Unclaimed LTA can sometimes be carried forward, but specific rules apply.

Cap on amounts : There might be a cap on the amount that can be claimed, which usually depends on the actual travel costs incurred. Employers often set these caps based on the level of the employee within the organization.

Financial year consideration : Claims must align with the financial year in which the travel occurred, influencing when and how LTA can be utilized.

Employers need to clearly communicate these limits and caps to ensure that both they and their employees can maximize the benefits of LTA while complying with all regulatory requirements.

Claiming leave travel allowance can significantly reduce employee taxable income by covering some of the travel expenses incurred during your leave. Here's a simple, step-by-step process to help you successfully claim LTA, ensuring you meet all necessary requirements and maximize your benefits.

Step 1. Check eligibility and plan your travel:

Begin by confirming eligibility for LTA with the HR department . Understand the specific terms, such as the allowed frequency of claims and permissible travel periods.

Employees should plan their travel within the scope of these terms, focusing on only domestic travel if international trips are not covered.

Step 2. Undertake the travel:

Once the leave is approved, undertake the travel. Remember, to claim LTA, employee must travel within the country and follow the shortest possible route to your destination.

Keep it in mind that LTA covers only the actual travel costs such as air, rail, or bus fares.

Step 3. Gather required documentation:

During and after the travel, collect all necessary documents that verify travel expenses. These include tickets, boarding passes, and receipts.

Ensure these documents clearly show the dates of travel, the amount paid, and the mode of transportation, as these details are crucial for LTA claims.

Step 4. Submit your LTA claim:

Fill out the LTA claim form provided by the employer. Attach all collected documents as proof of travel.

Submit this form to your HR or accounts department, depending on your company’s policy, within the specified deadline.

Step 5. Verification and approval:

The employer will verify the details of the LTA claim, ensuring all provided documents match the LTA policy’s criteria.

Once verified and approved, the claimed amount will be processed and reimbursed, or adjusted against the taxable income, as per the Income Tax Act 1961 provisions.

By following these steps and ensuring the correct documentation, employees can smoothly claim leave travel allowance and enjoy the tax benefits it offers.

Employee scheduling and Time-tracking software!

• Easy Employee scheduling
• Clear time-tracking
• Simple absence management

Understanding and implementing LTA in the company's benefits package can significantly enhance employee satisfaction and retention , offering both financial and morale-boosting advantages.

By familiarizing yourself with the rules, eligibility criteria, and claiming process outlined in this guide, you can ensure that your organization and its employees make the most out of this valuable benefit. Whether it's improving work-life balance or providing tax-efficient travel opportunities, LTA can be a cornerstone of a more motivated and committed workforce.

Is it possible to carry over unclaimed LTA from one block year to the next?

Yes, unclaimed LTA can be carried forward to the first year of the next block period only. However, it must be claimed in the first year of the new block; otherwise, it will be forfeited.

Can employees Claim LTA in case of a job change?

Yes, employees can claim LTA even if they change jobs, as long as they fulfill the other conditions related to the allowance, such as undertaking the travel and providing necessary documentation within the stipulated time frames of their employment period in each job.

Can LTA be claimed for family members' travel expenses alone if the employee does not travel?

No, the employee must be part of the travel. LTA cannot be claimed for the travel expenses of family members if the employee themselves does not travel. The allowance is intended to cover the travel costs incurred by the employee along with their family.

Written by:

Rinaily Bonifacio

Rinaily is a renowned expert in the field of human resources with years of industry experience. With a passion for writing high-quality HR content, Rinaily brings a unique perspective to the challenges and opportunities of the modern workplace. As an experienced HR professional and content writer, She has contributed to leading publications in the field of HR.

Please note that the information on our website is intended for general informational purposes and not as binding advice. The information on our website cannot be considered a substitute for legal and binding advice for any specific situation. While we strive to provide up-to-date and accurate information, we do not guarantee the accuracy, completeness and timeliness of the information on our website for any purpose. We are not liable for any damage or loss arising from the use of the information on our website.

Ready to try Shiftbase for free?

• Absence Rate
• Leave Travel Allowance
• Employee Absence Management
• Emergency Leave
• Leave Management