Allowances are extra payments given to employees for certain reasons like doing specific tasks, working in certain places, using special skills, or to cover costs related to their job.

Allowances are designed to compensate employees for various aspects of their work that go beyond their basic salary. This might include extra pay for working under challenging conditions, using unique skills, or even for the additional costs they incur while performing their job, like travel expenses. Each allowance is usually tied to specific job functions or conditions, ensuring fair compensation for extra demands or costs associated with a role.

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