A housing allowance is a form of payment made to employees by employer, to cover the costs of housing for employees.

This can include rent or mortgage payments, as well as related costs such as cleaning, maintenance, security as well as childcare.

A housing allowance forms part of taxable income and it should preferably be added back to taxable income for the purposes of determining the PAYE due.

Any form of housing allowance is disclosed under “Housing Allowance” on our payslip below the earnings tab

The tax effects on a housing allowance are similar to those applicable to the basic earnings of an employee.