What is Living Away From Home Allowance?
The LAFHA is an allowance which is:
- paid to an employee directly by their company to cover additional non-deductible costs.
- due to a job need that requires them to live somewhere other than their customary place of abode.
How Much is Living Away From Home Allowance?
The amount of living away from home allowance varies depending on the employer and the location of the job. In general, living away from home allowances can range from $50 to $200 per week, or more, to cover expenses such as accommodation, meals, and transportation. Some employers may also provide additional benefits, such as reimbursing for utility bills or offering a lump sum payment at the start of the assignment.
How much is living away from home allowance per day?
The living away from home allowance (LAFHA) per day can vary depending on the specific circumstances and employer policies. In Australia, for example, the standard daily LAFHA rate for eligible employees is $42.70 (as of July 2021). However, this rate may be adjusted higher or lower based on factors such as location, cost of living, and accommodations provided by the employer. It is important to check with your employer or human resources department to determine the exact LAFHA rate that applies to your situation.
Living away from home allowance rates 2023
Living away from home allowance rates vary depending on the organisation or company providing the allowance and the location of the employee. These rates are typically determined by the cost of living in the employee’s new location and may cover expenses such as rent, utilities, food, and transportation.
In 2023, living away from home allowance rates may range from a few hundred dollars per month to several thousand dollars per month, depending on the employee’s circumstances. Some organisations may also provide additional benefits, such as reimbursement for travel expenses or assistance with finding accommodations.
Benefits of Living Away From Home Allowance for Employers and Employees
Employers:
- Attract and retain talent: Offering a living away from home allowance can make the job more appealing to potential employees who are hesitant to relocate for a job. This can help companies attract top talent and retain valuable employees.
- Increased employee satisfaction: Providing employees with financial support for living away from home can help alleviate some of the stress and financial burden associated with being away from their families. This can lead to higher job satisfaction and productivity.
- Improved employee morale: Employees who feel financially supported by their employer are likely to have higher morale and a more positive attitude towards their work. This can lead to a more positive work environment and better overall performance.
- Compliance with regulations: In some countries, providing a living away from home allowance may be a legal requirement. By offering this benefit, employers can ensure they are compliant with labour laws and regulations.
Employees:
- Financial support: Living away from home can come with added expenses such as rent, utilities, and food. A living away from home allowance can help alleviate some of these financial burdens and make it easier for employees to adjust to their new living circumstances.
- Improved work-life balance: By providing financial support for living away from home, employers can help employees better manage their work-life balance. This can lead to reduced stress and increased job satisfaction.
- Flexibility: Employees who receive a living away from home allowance may have more flexibility in their living arrangements, allowing them to choose accommodations that best suit their needs and preferences.
- Peace of mind: Knowing that their employer supports them financially while living away from home can provide employees with peace of mind and assurance that they are taken care of during their time away from their families.
What Are the Eligibility Criteria for Living Away From Home Allowance?
To be eligible for the Living Away From Home Allowance in Australia, individuals must meet the following criteria:
- Be living away from their usual place of residence in order to undertake full-time work, training, or study
- Have their usual place of residence at least 90 minutes away from their new location
- Be living in temporary or short-term accommodation
- Be receiving a living-away-from-home allowance from their employer or study provider
- Be incurring additional expenses as a result of living away from home
It’s important to note that the eligibility criteria may vary depending on the specific program or organisation providing the allowance.
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