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Why do they have a car allowance in packages?

 
#1 Why do they have a car allowance in packages?
27/09/2007 11:15

why

why do most manager + grades in big 4 have a car allowance added as cash? why not just increase the basic?

Is it just to give a lower basic and therefore subject less salary to % increase/bonus?

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#2 RE: Why do they have a car allowance in packages?
27/09/2007 11:52

anon to why (#1)

car allowance is normally not pensionable or included in bonus etc if given as a %, it's often non guaranteed unless if written into your terms of employement, it's usually cheaper for them than giving you a company car

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#3 RE: Why do they have a car allowance in packages?
27/09/2007 13:58

jj to anon (#2)

Usually a car allowance carries with it the obligation to provide a car of the appropriate standard.

For example my last employer specified that if you took the car allowance that you had to provide a 4 door car less than 3 years old with insurance for business use. If it was off the road you had to hire a car at your own expense.

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