Hi,

Recently I've got a job. The employer is offering me some amount(except salary) payable monthly as an allowance. But the company does not want to show this either in Salary slip or in Offer Letter. But assurance has been given through mail that this amount will be given per month. I want to know whether this earning is illegal or legal.

Regards
Arnab Mitra

Legal or not... you want to make certain you have it in writing on company letterhead and signed before you start. I've worked for employers that made a lot of promises they had excuses for not putting in writing that they later pretended were never made. Today I am far wiser than I was then.

Just a word of advice... if an offer isn't in writing, you might not actually get it...

As far as legal or not... they can give you all sorts of compensation... as long as its reported to the taxing authorities.. it doesn't have to be in the offer letter. I believe it is legal to do as they were doing.

Are you working on commission? Perhaps they were offering this temporarily until you start earning commissions. Perhaps a better explanation of exactly how you are paid and based on what might help offer better advice. I had to make a few assumptions based on what you have said.

What country, and are you a resident there?
In the US, an allowance would only be something added to wages or contract pay, such as for moving expenses. A stipend might be for a school job in connection with classes.
An employer in the US can't arbitrarily decide to pay someone as a contractor (without taxes taken out and half the FICA paid by him), and would be held liable if the job is found not meeting the definition of contractor. 2 of several rules of a contractor are not routinely working on the premises using company equipment, and the employer not being the only source of the contractor's income.
You need to know what the tax liability is going to be and who owes taxes.