Meaning of the word "regional allowance" in English

What does "regional allowance" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

regional allowance

US /ˈriː.dʒən.əl əˈlaʊ.əns/
UK /ˈriː.dʒən.əl əˈlaʊ.əns/
"regional allowance" picture

Noun

an extra amount of money paid to an employee who works in a particular area where the cost of living is higher

Example:
Employees working in the capital receive a regional allowance to cover higher housing costs.
The company increased the regional allowance for staff based in remote areas.