Salary Reimbursement Policy: Free Template

Whether you’re an employer or an employee, understanding salary reimbursement policies is crucial in ensuring fair and transparent compensation practices. These policies outline the guidelines and procedures for reimbursing employees for their expenses. It is important to outline the following while drafting a salary reimbursement policy.

Scope and Eligibility: 

To start, a well-crafted salary reimbursement policy should clearly define the scope of expenses that are eligible for reimbursement. It’s important to specify which expenses are covered, such as travel, training, or professional memberships. Additionally, outline the eligibility criteria, including which employees are eligible, the level of approval required, and any specific conditions or restrictions.

Documentation Requirements:

To ensure transparency and accountability, your salary reimbursement policy should include detailed documentation requirements. Specify what kind of supporting documents employees need to submit with their reimbursement requests, such as receipts, invoices, or travel itineraries. It’s essential to emphasize the importance of retaining original receipts to validate the expenses. Additionally, when managing reimbursement processes, consider the importance of creating your own pay stubs for accurate record-keeping and compliance with financial documentation standards.

Submission and Approval Process:

Provide a clear step-by-step process for submitting and approving reimbursement requests. Explain how employees should submit their requests, the deadline for submission, and the channels or forms to use. Outline the workflow for approvals, including the individuals or departments responsible for reviewing and approving requests, and any monetary thresholds that require additional levels of approval.

Timelines for Reimbursement:

To manage expectations and ensure prompt reimbursement, establish clear timelines for processing and reimbursing expenses. Communicate how long it generally takes to process reimbursement requests and set a target for when employees can expect to receive their funds. This will provide transparency and build trust between the employees and the company.

Reimbursement Limits and Policies:

Specify any limitations or maximum reimbursement amounts for different expense categories. For instance, you may set a daily or monthly limit for meals or a cap on travel expenses. Additionally, clearly outline any specific policies related to reimbursement, such as the company’s stance on personal expenses. 

Tax Implications:

Address the tax implications of reimbursement payments. Provide information on whether reimbursements are taxable or non-taxable, and if employees need to report them separately.


It is important to ensure there is constant communication to ensure employees understand the reimbursement policy. Keep employees informed of any updates or changes to the policy to help them navigate the reimbursement process effectively.

Here’s a free template that you can refer to.

Megha K

I am an HR executive at Springworks. I curate employee stories and strive towards better work culture

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