What is an allowance?

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Accepted Answer

An allowance is money your boss pays you extra to your salary or wages. It can be for things like extra skills you bring to the job, special responsibilities you’ve taken on (e.g. supervisor), or an unpleasant or inconvenient part of your work. They can also be to reimburse you for costs or expenses related to your job. There’s no law that says you have to get an allowance, but if an allowance payment is part of your employment agreement, any changes have to be agreed in writing.
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