Leave Travel Allowance (LTA)

What Is Leave Travel Allowance (LTA)?

LTA (Leave Travel Allowance) is a benefit offered by most companies, especially in India, allowing employees to recover their travel-related expenses. Such insurance usually covers the costs of the employee and their family members, e.g. air tickets, train tickets, hotel accommodation, local transportation, etc. Employers may decide on the frequency of claims and reimbursement cover destinations. In most cases employees need to show the proof of travel, i.e., tickets and receipts, in order to be reimbursed. LTA is aimed at encouraging staff members to go on vacation and spend time with their relatives, besides providing a financial advantage. This motivates employees to stay productive and therefore commit to their work knowing that they enjoy subsidized travel discounts.

Example

Leave Travel Allowance (LTA) would be when John, an employee at a multinational company in India, plans a family visit to Goa during the festival season. He submits an LTA claim form to his HR department. The company grants his request due to the fact, that he has accumulated sufficient LTA benefits and is in accordance with the company's policy on travel destinations and family members. John holds all the tickets and receipts from the trip. Upon his arrival, he presents the required documentation, and the company will reimburse him for his airfare, hotel stay, and local travel expenses involved in the trip. This LTA perk urges John to take the vacations and positively rewards his loyalty to the company through the creation of a healthy work-life balance.