Frequency of Commuting Allowance

Global Payroll for Japan supports payment of commuting allowance in pay cycle frequencies of one day, one month, three months, and six months.

  • If the frequency is one day, the system calculates the monthly commuting allowance payment as the daily amount multiplied by the number of days worked.

  • If the frequency is one month, the system uses the amount as the monthly commuting allowance.

  • If the frequency is three months or six months, the actual payment is made only once for the three- or six-month period, but the system prorates and tracks the monthly value of cash and non-cash commuting allowance for monthly remuneration calculations.

Payment frequency depends on the data input method. For the total amount method, all components of an employee's commuting allowance must be paid on the same frequency. For the route method, each commuting route can be paid according to its own frequency.