Employees often have questions about their right to travel expenses. Although it seems logical that employers provide compensation for the costs that employees incur to travel to work, it is important to know that there is no legal right to travel expenses. This right must be specifically stated in the employment contract or an applicable collective labor agreement.
In this blog we explain in detail what the options are for travel expenses, when this is tax-free and what conditions apply. This way you know exactly what you are entitled to as an employee!
No legal right to travel expenses, but options are available
A travel allowance is not an obligation for employers, unless it is explicitly included in an employment contract or collective labor agreement. However, employers may voluntarily provide higher compensation than the tax-exempt limit, but the amount above this limit is taxed as wages.
Tax-free travel allowance: what are the conditions?
Under certain conditions, a travel allowance can be provided tax-free. This means that the compensation is not included in the salary and therefore does not count for payroll tax and social security contributions. The most common exempt allowance is the kilometer allowance.
Exempt fee of €0.23 per kilometer (2024)
Employees can receive a tax-free allowance of up to €0.23 per business kilometer, including commuting. This arrangement applies to transport 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 usepublic transportationto get to work? Then your employer has two options for a tax-free allowance:
- Reimbursement of actual travel costs 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
If an employee opts for reimbursement of the actual costs, for example for public transport, the employer must keep records in which these costs are demonstrated.
Calculation of the travel distance
The travel distance is calculated over the usual road and depends on the mode of transport. For public transport, the kilometers are based on NS publications and other standard calculations.
No exemption for transport provided by the employer
If the employer provides transportation, such as a lease car or a company bicycle, tax-free travel allowances cannot be provided. This also applies if the employer offers public transport subscriptions or organizes carpooling arrangements in which employees ride along.
Carpooling: what is possible?
An employee who carpools as a driver can receive a tax-free reimbursement of a maximum of € 0.23 per kilometer, including any additional kilometers to pick up colleagues.
Tax-free mileage allowance for the driver in organized carpooling
Is carpooling arranged by the employer ? Then the driver may receive a maximum of € 0.23 per kilometer driven tax-free per calendar year in 2024. This maximum amount also applies to any extra kilometers that the driver travels to pick up colleagues. Please note: this arrangement only applies to the driver; A different arrangement applies to co-drivers.Co-drivers are not entitled to a tax-free allowance if carpooling is arranged by the employer.
Fixed travel allowance
Employees with a permanent job may be eligible for a fixed tax-free travel allowance, provided they travel to the same workplace at least 128 days a year. This arrangement applies pro rata to part-time employees. Employees who work partly from home can choose between a travel allowance or a work from home allowance of € 2.35 per day (2024). For employees with a travel distance of more than 150 kilometers, a mandatory subsequent calculation applies at the end of the year.
Other costs and taxes
Reimbursements for items such as parking costs, damage to a vehicle or other transport costs are usually considered taxable wages. Only parking costs paid directly by the employer, such as a parking permit, are exempt.
Legal advice on travel expenses reimbursement?
Do you have questions about your rights as an employee or are you unable to reach an agreement with your employer about the compensation? The employment law specialists at
Arslan Lawyers are ready to assist you. Please feel free to contact us for legal advice or support. Within 24 hours you will receive clarity about your options, so that you know where you stand.
