A monetary allowance provided by an employer to an employee to offset the costs associated with using a personal mobile device for work-related purposes is commonly referred to as a cell phone stipend. These costs can include data charges, call fees, and device maintenance. For example, a company might offer its sales team a fixed monthly sum to cover the expense of using their personal smartphones for client communication and accessing company resources while in the field.
Such allowances offer numerous advantages for both employers and employees. For employers, they can be a cost-effective alternative to providing company-owned devices, reducing hardware procurement and management overhead. Employees benefit from the flexibility of using their preferred devices while receiving financial assistance to cover the associated expenses. Historically, these arrangements have grown in popularity as the line between personal and professional device usage has blurred, fueled by the increasing reliance on mobile technology in the workplace.