Increase in tax-free travel allowance?
Commuting daily by car or public transport is a fixed routine for many people. With rising fuel and public transport costs, it’s understandable that the question arises: “Why isn’t my travel allowance increasing as well?”
It has now been officially announced that the government intends to increase the tax-free travel allowance from €0.23 to €0.25 per kilometer.
What does this mean for you?
The government is taking this step to better compensate for high fuel costs. Once the formal decision has been made (expected in about three months), the increase will apply retroactively to the entire year 2026. This is expected to result in an advantage of approximately €0.30 per liter of fuel.
Why is the allowance still €0.23?
Although the government has promised to raise the fiscal limit, the formal policy decision still needs to be finalized. Until then, the tax authorities apply the current maximum of €0.23 per kilometer.
In addition, it’s important to know that even with the new limit of €0.25, two factors remain decisive for what you ultimately receive:
Collective labor agreements (CLA)
In many sectors, travel allowances are set in a collective labor agreement (CLA). Trade unions and employer organizations negotiate these agreements. If a specific amount is agreed upon in your CLA, the employer is bound by it and cannot deviate without violating the agreement.
More than just fuel
Travel allowances are not only influenced by fluctuating fuel prices. Public transport fares are also indexed (increased) annually. This makes it challenging for employers and sectors to keep allowances aligned with the market.
As an agency worker, you are often covered by the CLA for agency workers (such as ABU or NBBU). In addition, the principle of equal pay applies. This means that agency workers are entitled to a total employment package equivalent to that of permanent employees at the hiring company.
This means your specific travel allowance depends on what is stated in your contract and which CLA applies at your workplace. It is therefore not arbitrary, but a fixed agreement.
How to get clarity
- Check your contract and CLA
First, review your employment contract and the applicable CLA to see what has been agreed regarding travel expenses. Is there a fixed amount per kilometer or a fixed daily allowance? This is leading.
- Ask about it
Unsure whether the allowance is applied correctly in your situation? Contact your agency representative. We can explain exactly which arrangement applies to your assignment and how it has been determined.
- Keep track of your travel
Whether you travel by car or public transport, it is always wise to keep insight into your actual travel costs. This way, you know exactly what you spend versus what you are reimbursed.
We understand that travel expenses are an essential part of your employment conditions. Although we are bound by applicable CLAs and agreements with our clients, we believe it is important that you know where you stand.
Do you have questions about your payslip or the travel allowance for your assignment?
Don’t hesitate to contact us — we’re happy to help!
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