Allowance - Do I need to repay it back
 

Hey Guys,

I just got an intent of offer from my employer, salary is not what I had wanted :frown:and as part of the salary they have added furniture allowance of 20K which will be amortised over 4 years. Does that mean that I will have to repay it back in the event of leaving the employment within that 4 year period?:confused:

Re: Allowance - Do I need to repay it back
 

sounds like it, but best ask them.

I guess, it could be that you get the 20k paid every 4 years...

Re: Allowance - Do I need to repay it back
 

Why don't you ask them?

Re: Allowance - Do I need to repay it back
 

If it is a similar policy to my employers it will be written off over the 4 year period as straight-line depreciation i.e. if you leave after 2 years you will have to pay 50% back.

Some employers offer a top up at the end of the period but is not likely to be the same amount again, perhaps 25%.

In my case we used to have to supply the invoices so it would have to be spent on furniture. As this is no longer the case I have taken mine even though I dont need any new furniture. It is the opposite of a loan - the longer you work for them the less you owe. The drawback is if you do buy furniture and leave before the allowance is fully depreciated you are not likely to sell the furniture for the amount you still owe.