Although an employer, allowances and perquisites provide, both benefits are treated separately. An allowance is the amount the employer pays to cover specific expenses related to the employee’s work. Allowances are usually paid regularly and are included in the employee's salary. Examples of allowances include travel allowance, meal allowance, medical allowance, and house rent allowance. Perquisites are fringe, non-cash benefits an employer provides to an employee in addition to their regular salary.