Travel allowance
In the Netherlands, many employees receive a travel expense reimbursement or travel allowance, known as "reiskostenvergoeding," from their employers. This compensation is designed to cover the costs of commuting to and from work, regardless of the mode of transportation used.
What is travel allowance?
Travel allowance is a payment your employer may provide to cover the costs of traveling to work, whether by car or public transport. It can apply to daily commutes and business trips, such as visiting clients. Some employers offer a fixed amount per kilometer, while others provide a fixed monthly sum. This reimbursement typically appears on your payslip.Eligibility for travel allowance
You are entitled to travel allowance if it's specified in your collective labor agreement (CAO) or employment contract. There is no legal requirement for employers to provide this benefit. If you're eligible, the mode of transportation you use (bicycle, car, or walking) doesn't affect your entitlement. However, if you have a company car or an employer-provided public transport card, your employer may not be obligated to pay additional travel expenses.Amount and taxation
Employers can provide a tax-free reimbursement of up to €0.23 per kilometer. Any amount exceeding this is considered taxable income. For public transport users, employers can reimburse all costs tax-free.Carpooling and public transport
If your employer organizes carpooling, the driver can receive a maximum tax-free reimbursement of €0.21 per kilometer, including extra distance to pick up colleagues. Passengers in this scenario don't receive reimbursement. For self-organized carpooling, all participants are eligible for reimbursement, but detours aren't covered.For public transport users, employers have three options for tax-free reimbursement:- Actual travel costs incurred
- Number of kilometers traveled
- Providing a public transport card
Understanding your rights regarding travel expense reimbursement can help ensure you're receiving fair compensation for your commuting costs. Always chack your CAO or employment contract for specific rules applicable to your situation.