What is LAFHA?
LAFHA essentially stands for Living Away from Home Allowance. As the name indicates this applies when an employee is required to live at a place which is away from his usual residence for work. This allowance aims at compensating the additional expenses incurred or disadvantages suffered owing to this temporary move.
Period of being away from home should exceed 21 days to distinguish LAFHA from travel allowance.
What all gets covered in this allowance?
LAFHA is a fringe benefit. It typically covers an employer providing food and accommodation to the employee or the employee being reimbursed for the actual expenses incurred on food and accommodation.
Usually reasonable weekly expenses are paid for the employee and family (if spouse and children are accompanying)
Does IPS process LAFHA?
Yes, of course we do process LAFHA wherever applicable. Please feel free to email us or call us for further details.