Fixed and variable rate allowance (FAVR)

Fixed and variable rate allowance (FAVR),

Definition of Fixed and variable rate allowance (FAVR):

  1. A stipend given to employees who utilize their own vehicles for work related travel. The allowance covers variable costs such as gasoline, oil and other routine maintenance. Further, it may include fixed costs such as depreciation, insurance and taxes.

Meaning of Fixed and variable rate allowance (FAVR) & Fixed and variable rate allowance (FAVR) Definition