Overview of UnitByRate Allowances
A Unit by Rate allowance is an allowance paid to an employee that is calculated multiplying a number of units by a rate of payment for these units.
The rate can be a fixed rate for all employees or could vary based on certain criteria. There are two standard patterns:
- Allowances with a Fixed Rate that Applies to All Employees: For every day that you work from the office you get an allowance that is equal to 1/10th of your daily salary (Monthly Base Salary / 21.67) / 10. So, the rate is common across employees.
- Allowances with a Rate that Varies Based on Employee Criteria: For every day that you work from the office you get an allowance that is equal to 1/10th of your daily salary (Monthly Base Salary / 21.67) / 10 and that gets further multiplied by a factor that depends on your work location: Paris 1.2 / Lyon 1.1 / Lille 1.05, and any other location, 1.