Reimbursement is a common term in the professional world, especially among employees who often use their own money for work-related expenses. For example, if you buy a business travel ticket using personal funds and later request a refund from the company, that's called reimbursement.
What is Reimbursement?
Reimbursement is the process in which a company compensates an employee for expenses paid in advance for business purposes. However, not all expenses are eligible for reimbursement. They must align with company policy and be supported by valid proof of payment.
Examples of Reimbursable Expenses
- Business travel, including flight tickets, hotel accommodations, local transport, etc.
- Office supplies, such as stationery, printer ink, or additional cables during remote work.
- Meals during external meetings, if covered under company policy.
Types of Reimbursement in Companies
1. Business Travel Reimbursement
This is the most common type, especially for employees who frequently travel for work. Reimbursable expenses typically include transportation (train, flight, taxi, or fuel for private vehicles), accommodation (hotels), and meals during the trip. Some companies also reimburse additional costs like parking or tolls if valid receipts are provided.
2. Medical Reimbursement
This involves reimbursement for medical treatment or healthcare expenses paid by employees. Usually, companies set a maximum limit and specify the types of treatments eligible for claims, such as doctor consultations, medications, or annual medical check-ups. This applies to companies without insurance partnerships or serves as a supplement to existing health coverage.
3. Office Supplies Reimbursement
Sometimes, employees need to purchase work-related supplies independently—especially in urgent situations or while working from home. Examples include stationery, chargers, headsets, or ergonomic chairs. Reimbursement is made once the expense is reported and confirmed as necessary for work purposes.
4. Training Reimbursement
If you attend training sessions, workshops, or seminars that help improve your job skills, your company may reimburse you—provided the activity was pre-approved by a supervisor. This can include registration fees, transportation to the venue, or even study materials like e-books or manuals.
How to Submit a Reimbursement Request
Here are the general steps to file a reimbursement:
- Use personal funds first, ensuring the expense is for legitimate company purposes and pre-approved by your supervisor.
- Keep all proof of payment, such as receipts, invoices, or e-receipts.
- Fill out the reimbursement claim form, either physical or via the company’s internal system/app.
- Attach supporting documents, such as travel orders, tickets, or purchase receipts.
- Submit to HR or Finance, following your company’s procedures and timelines.
- Once verified, the company will transfer the funds, usually via direct bank transfer or payroll.
Requirements and Tips to Get Your Claim Approved
To increase the chances of approval:
- Keep original receipts, not just photos or copies.
- Ensure the information matches the documents submitted.
- Understand your company’s reimbursement policy.
- Submit claims on time, don’t wait for months.
- Only claim business-related expenses, with prior approval from your manager.
Example:
Lina, a sales representative, bought a train ticket to Bandung for a client meeting. She kept the receipt and a travel order from her manager. After completing the reimbursement form and attaching all necessary documents, her claim was approved, and the funds were reimbursed within 7 business days.
Benefits of a Reimbursement System
A good reimbursement system benefits both employees and the company. Here’s how:
- Protects employees from personal financial loss
- Helps companies track and manage expenses
- Shows appreciation for employees’ commitment
