Employees often have questions about their right to a travel allowance. While it may seem logical that employers provide compensation for the costs employees incur to travel to work, it is important to know that there is no statutory right to a travel allowance. This right must be specifically laid down in the employment contract or an applicable collective labor agreement.
In this blog, we explain in detail what the options are for a travel allowance, when it is tax-free, and what conditions apply. That way, you will know exactly what you are entitled to as an employee!
No statutory right to a travel allowance, but there are options
A travel allowance is not mandatory for employers unless it is explicitly included in an employment contract or collective labor agreement. However, employers may voluntarily provide a reimbursement higher than the tax-exempt threshold, but the amount above this threshold is taxed as wages.
Tax-free travel allowance: what are the conditions?
Under certain conditions, a travel allowance can be provided tax-free. That means the reimbursement is not included in wages and therefore does not count toward payroll tax and social security contributions. The most common exempt reimbursement is the mileage allowance.
Exempt reimbursement of € 0,23 per kilometer (2024)
Employees can receive a tax-free reimbursement of up to € 0,23 per business kilometer, including commuting. This scheme applies to travel by bicycle, motorcycle, car, or public transport. For public transport, a minimum distance of 10 kilometers applies, and you must travel to work at least 40 days per calendar year.
Tax-free reimbursement for public transport
Do you use the public transport to get to work? Then your employer has two options for a tax-free reimbursement:
- Reimbursement of the actual travel expenses incurred (for example based on tickets or subscriptions)
- Or reimbursement based on the number of kilometers up to a maximum of € 0,23 per kilometer
When an employee opts for a reimbursement of the actual costs, for example when using public transport, the employer must keep records in which these costs are substantiated.
Calculation of the travel distance
The travel distance is calculated via the usual route and depends on the mode of transport. For public transport, the kilometers are based on NS publications and other standard calculations.
No exemption when transport is provided by the employer
When the employer provides transport, such as a company car or a company bicycle, tax-free travel reimbursements cannot be granted. This also applies if the employer offers public transport subscriptions or organizes carpool schemes in which employees ride along.
Carpooling: what is possible?
An employee who carpools as a driver can receive a tax-free reimbursement of up to € 0,23 per kilometer, including any extra kilometers to pick up colleagues.
Tax-free per-kilometer reimbursement for the driver in organized carpooling
Is the carpooling arranged by the employer arranged? Then the driver may receive a tax-free amount of up to € 0,23 per kilometer driven per calendar year in 2024. This maximum also applies to any extra kilometers the driver makes to pick up colleagues. Note: this rule applies only to the driver; a different rule applies to passengers.
For passengers, there is no entitlement to a tax-free reimbursement if the carpooling is arranged by the employer.
Fixed travel allowance
Employees with a fixed workplace may be eligible for a fixed tax-free travel allowance, provided they travel to the same workplace at least 128 days per year. For part-time employees, this scheme applies pro rata. Employees who partly work from home can choose between a travel allowance or a home-working allowance of € 2,35 per day (2024). For employees with a travel distance of more than 150 kilometers, a mandatory year-end recalculation applies.
Other costs and taxes
Reimbursements for items such as parking costs, damage to a vehicle, or other transport costs are usually treated as taxable wages. Only parking costs paid directly by the employer, such as a parking permit, are exempt.
Legal advice on travel expense reimbursement?
Do you have questions about your rights as an employee, or are you unable to reach an agreement with your employer about the reimbursement? The employment law specialists at Arslan Advocaten are ready to help. Feel free to contact us for legal advice or support. Within 24 hours you’ll have clarity about your options, so you know where you stand.
Frequently Asked Questions
Is there a legal requirement for my employer to provide a travel allowance?
No, there is no statutory obligation for employers to provide a travel allowance unless it is explicitly stated in your employment contract or a collective labor agreement. Employers may choose to offer reimbursement voluntarily.
When can I receive a tax-free travel allowance?
You can receive a tax-free travel allowance if it meets certain conditions, such as a reimbursement of up to €0.23 per kilometer for travel by bicycle, motorcycle, car, or public transport, and if specific criteria like minimum travel distance and days are met.
What are my options if my employer provides transport like a company car?
If your employer provides transport, such as a company car or bicycle, tax-free travel reimbursements are generally not available. However, you may still receive a tax-free reimbursement for carpooling as a driver at up to €0.23 per kilometer.
How is the travel distance calculated for reimbursement purposes?
Travel distance is calculated based on the usual route you take, using standard sources like NS publications for public transport or typical routes for other modes of transport, which determines your eligibility for reimbursement.
