Good morning everybody,

Just have one query regarding the fixed cost portion of the SARS travel allowance table.

Scenario:

An employee uses his private vehicle for business purposes.

The value of his vehicle is R180 000, which equates to a fixed travel allowance of R5544.17 per month as per the SARS travel allowance table.

But the director of the company only pays him R3000.00 per month as a fixed travel allowance. No pro rata basis is required as the employee has worked for the full 12 months.

Question:

Is the company allowed to pay the employee only R3000.00 pm or should the company,by law, abide to the SARS travel allowance rate of R5544.17?