Hi All

I need your help. I'm in a HR Outsourcing BPO. I want to know something related to Salary Components. In Salary ,there are many components, like Basic salary, LTA , HRA , MEDICAL etc. So the Questions, which my subordinate asked to me why these components like LTA, Conveyance Allowances are added in Salary. Because LTA is a component paid to provide for any expenditure by an associates towards any travel in respect to him/herself and dependents thereof. and we are getting pick and drop facility also.So why this component is added in Salary?

Please help and reply as soon as possible