Anyone of you can guide me on how to calculate the car mileage allowance? What are the considerations should I put in? petrol, maintenance and??
Do you have the standard format? I want to justify it with my boss because my current mileage claim is only RM0.30/km, very hard to survive

30sen/km is way to low. You can't cover the cost of your car maintenance with that claim.

30 cents? For motorbike is it?
I have to agree that the mileage allowance is kinda low.
1 way you could justify is to use your company's competitor rate.

My boss asked me to provide the details calulation to him, why I need more than RM0.30/km
Can anyone of you help to justify on it? Thanks.

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Added on August 31, 2010, 11:58 amThey don't want to benchmark the market price, but want me to provide the details calculation

This post has been edited by ericyuu: Aug 31 2010, 11:58 AM

let me try on this math as it sounds kinda simple for me... Take Proton car for eg...

car petrol consumption = avg RM60 for 300km distance, per km = 0.2 cents /km (u may also use your car fuel consumption againts current fuel price)

car maintenance = avg RM250 for every 5000km, per km = 0.05 cents / km

tires = avg RM 1200 for every 40000km, per km = 0.03cents / km

car insurance & roadtax = RM1500 for every year (asumming 1yr travel 20000km), per km = 0.075 cents / km

car depreciation = avg RM6000 per annum (assuming 1 yr travel 20000km), per km = 0.3 cents / km (looks may not be strong points, but u can defend that your own car resale value will be lower due to higher mileages)

so if total up all the above it will work out to something like ~ RM 0.655 cents per KM travel...

Every things can be justify.... just we need to think a way and logicable....

Hope this help...

That's look good:) thanks so much for your value information

wow good example there

Sounds more like a car allowance in lieu of a company car benefit/perk, rather than a mileage allowance to pay for petrol and toll.

i've worked for two different companies up until now and both of the company use the same rate which is 60cents/km for traveling by car. the distance is measured using google map. key-in where you start and where yo ens your journey and the google map will tell you how many km you have traveled

actually is to work out the cost incurred when u travel... but bear in mind, company car benifit is what u enjoy everyday as long as u r working for the company whereas mileage claim is only eligible when u travel on case to case basis on company matters...

If it is to simply reimburse the cost of travelling, then the maximum claim is logically the equivalent taxi fare.

Stuff like depreciation, insurance, maintenance and road tax is not cost of travelling. It's cost of owning a car. Stuff like depreciation, insurance, maintenance and road - you incur anyway even if you don't use your car for work.

If you then argue that you would not incur as much depreciation, insurance, maintenance and road tax IF you weren't driving for business - then back to my first sentence... take a taxi.

For people who need to drive for work... then a car is a tool of trade. Companies should provide all the tools their employees need to ply their trade. So in that case, the company either gives them a company car, or provide the kind of allowance you've described so that they can buy a car for work.

Actually 30cent per km is more than enough to cover your petrol and maintenance. Its just the car depreciation that most employer reluctant to share it. By right, they should at least bear 1/2 of the depreciation cost.

Is 1/2 your mileage purely business and work related?

let's put things right back...

mileage claims is only for work related matters... so it has to be business and work related. Travelling from home to office is should not be entitle for mileage claim. (at least most of the company practise that)... Hence the above calculation is logical... the more u travel for company relater matters, then car depreciation, car wear and tear will come to issue... But on how company deal with it is another issue... a lot of company limit 0.60 cents per km for mileage claim for 1st 500km and then 0.40 (lower) per km for subsequent... there should be a basis for them to evaluate...

dun forget include toll and parking ya.

also tell your boss TNB's give rm0.90 for car and rm0.35 for motorcycle. just for ur boss reference (not including meal, toll, parking, etc..)
hohohooo...

normally toll & parking are seperate claim with bill right??? so in this case should not include under car mileage claims...

I doubt very much TS's company is the same level as TnB.

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Added on September 1, 2010, 11:49 amYes, mileage claim is not for covering every other fringe cost associated with the travel. Thats why its call mileage claim. If you find the rate too low to your liking, there are other firms like TnB who are generous enough to offer Rm0.90/km.

This post has been edited by TommyTan: Sep 1 2010, 11:49 AM

i think mileage claim is only on the distance,

the other tolls and parking is on reimbursement basis and should be separate from mileage claim

true... an avg mileage claim would be somewhere 0.50 cents per km...

or you can always drive a diesel car.

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Added on September 1, 2010, 11:57 amusually , company with less people claiming will have better rates.

Travel-heavy company with many mobile salespeople will tend to have lower KM rate.

And if you are a non-regular traveller in such place, its naturale to feel "unfair".

This post has been edited by TommyTan: Sep 1 2010, 11:57 AM

hmm... my previous company pay RM0.50/KM, i think average should around RM0.50-0.70, juz my 2cents.

my ex-firm pay rm0.70/km, included toll and parking, but must count start from office to client place.

damn, u got 30cents, i only got 25cents!!!!

Work in 3 companies before...

1st company, RM0.70/km (and that was 2006)
2nd company (Cina pek company) - RM500 permonth constant (include everything)
3rd company, RM0.85/km (current)

lol, mine is RM0.50, parking n toll is other count~

Chinaman boss spotted.

I have to bump this old topic.
How about the price now?
My company only RM0.50

seems too low.

Agree... How much average?

80cents/km sounds logical

If the company monthly give RM300 for maintenance and full claims toll & petrol is it worth it?

My ex company paid RM0.75/km. Parking and toll claim separately.

Mine RM0.60/km for outstation, excluding tolls and parking.

For maintenance, RM300/months fixed.