Pay · HR glossary

Expense Reimbursement

Expense reimbursement repays an employee for eligible costs incurred for work. Payment usually depends on the employer's policy, supporting evidence and applicable tax rules.

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Example

An employee pays an approved train fare for a client visit and receives the eligible amount after submitting the required claim details.

What to keep in mind

Reimbursement is different from a salary allowance or additional earnings. Explain what is eligible, retain necessary evidence and check tax treatment rather than assuming every payment labelled reimbursement is exempt.

Further reading

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