Employee transportation costs: what are the obligations for employers in France?
As an employer in France, you are required to cover part of your employees' transportation costs between their home and their place of work. This article details the types of costs involved, the obligations, and the reimbursement procedures.
As an employer in France, you are required to cover part of your employees' transportation costs between their home and their place of work. This article details the types of costs involved, the obligations, and the reimbursement procedures.
Coverage of transportation costs in France: are you affected?
All employers must contribute to the cost of travel passes for employees commuting between their home and place of work. This obligation applies to public transportation (e.g., SNCF, RATP) and public bicycle rental services.
Which means of transportation are eligible for mandatory contribution?
The employer must contribute if the employee has one of the following passes:
- An annual, monthly, weekly, or automatically renewable card or pass for public transportation.
- A subscription to a public bicycle rental service. However, fuel costs are not covered, nor are individual tickets.
Amount of the Employer's Contribution in France
The employer must cover at least 50% of the cost of season tickets, based on the second-class fare for the shortest journey between home and work. This obligation applies even if several tickets are required for a journey, such as a train followed by a bus. If the employee has already received compensation, the employer is not required to contribute 50%.
Reimbursement procedures
Employees must submit their transportation tickets to their employer in order to receive reimbursement. Reimbursement must be made as soon as possible and no later than the end of the month following the ticket's validity period. Reimbursements are made on a monthly basis for annual passes. In the event of a change in the reimbursement terms, the employer must inform employees at least one month in advance.
Optional coverage
Employers in France may choose to reimburse certain personal transportation expenses (e.g., fuel costs, electric vehicles) through a unilateral decision or company agreement. This may include bonuses or mileage allowances for journeys made by private car. In 2025, the annual tax exemption limit for fuel allowances will be raised to €300 (compared to €200 in 2024) and the recharge allowance for electric vehicles will increase from €500 to €600 per year.
The sustainable mobility allowance
The sustainable mobility allowance (FMD) allows employers to cover, without obligation, the costs of employees using alternative means of transport such as:
- Bicycles (with or without assistance),
- Carpooling,
- Public transport other than that already covered,
- Other shared mobility services,
- Electric vehicles or personal mobility devices (scooters, motorcycles).
This allowance can be granted in the form of a lump sum exempt from social security contributions, up to a limit of €700 per year per employee, and €900 in the French overseas departments. From 2025, this ceiling will rise to €900 if the employee also benefits from mandatory public transport coverage.
What will change in 2025
The 2025 Finance Act introduces a change regarding the exemption from social security contributions on travel passes, which will rise to 75% of the cost of the passes, instead of 50% previously.
Source(s) : French Ministry of the Economy and Finance
https://www.economie.gouv.fr/entreprises/frais-transport-salaries