What is non-taxable risk allowance?

A non-taxable risk allowance is a type of compensation provided to employees to compensate them for taking on additional risks or hazards in their job. This allowance is typically paid in addition to the employee's regular salary and is not subject to income tax. It is intended to provide financial support to employees who may face increased risks or dangers in their work, such as those working in hazardous environments or high-risk industries.