Compensating for your employees' travel expenses
Do your employees make use of public transport to get to and from work? Then you are legally obligated to compensate them for their travel expenses.
Where does the law stand on public transport (not including train services)?
The compensation of your employees' use of public transport (other than train) to get to and from work is subject to specific provisions:
- The employer contribution is obligatory if the journey is at least 5 kilometers.
- Is the cost of transport proportionate to the distance? Then your employer contribution to the travel costs is equal to the price of a train ticket for a similar journey, but limited to 75 percent of the actual cost of the transport.
- Is the cost of transport fixed, regardless of the distance? Then your compensation amount is 71.8 percent of the actual transport cost, limited to the compensation provided for the train for a distance of 7 kilometers.
Other options for compensating travel costs
Your employer contribution to public transport travel costs may end up being higher depending on your sectoral or company CLA and it could be compulsory for distances shorter than 5 kilometers.