Transport Costs: Understanding The Mobility Voucher In 5 Questions
If you commute to work by bike, carpool or electric car, you will soon be able to get a financial boost from your employer. From 1 January 2022, the mobility voucher will come into force to cover employees' transport costs. We invite you to discover this new means of payment which is inspired by the meal voucher in 5 questions.
1- What is it about?
The mobility voucher is a means of payment issued to employees by their company in dematerialized and prepaid form.
Inspired by the meal voucher, this mobility voucher allows employees to pay for certain expenses related to their home-work journeys, when these expenses are paid for by the company.
To be noted: the mobility voucher has been provided for in the framework of the Mobility Orientation Law (LOM) of 24 December 2019 for the implementation of the sustainable mobility package.
As a reminder, the sustainable mobility package allows the optional coverage by the company of up to 600 euros per year of the costs related to the use by employees of clean and eco-responsible means of transport for their travel between their home and workplace.
The aim is to encourage alternative means of travel to the private car, such as cycling, carpooling or electric, hybrid or hydrogen-powered vehicles.
When a company decides to grant this financial aid, the amount, terms and conditions and allocation criteria are determined by a company agreement, inter-company agreement or branch agreement.
2- How does it work?
With the entry into force of the mobility vouchers on 1 January 2022, the employer can pay the sustainable mobility package in two ways:
- either directly on the employee's pay slip
- or by giving them a mobility voucher, the terms of application of which were specified by a decree published on 17 December 2021 in the Journal officiel.
With this dematerialized voucher, the company grants a credit to its employees. This credit is linked to an account and a digital platform that keeps track of the expenses incurred.
As with luncheon vouchers this voucher is issued by a specialized company that sells it to the employer. To be valid, the mobility voucher must mention the name of the employee and the issuer of the voucher.
The period of validity of the mobility voucher is set by the issuer. It must extend at least until the last day of the calendar year in which the voucher was issued.
3- For whom?
From 1 January 2022, all employees whose transport costs are covered by the company can benefit from mobility vouchers:
- employees of private sector companies
- magistrates and civil and military personnel of the State
- staff of local authorities
- employees of the hospital civil service.
In addition, an employer who decides to cover all or part of the cost of transporting staff must make it available to all employees of the company who use sustainable means of transport for their home-to-work journeys.
4- For what costs?
The decree published in the Official Journal on 17 December 2021 specifies the conditions for using the mobility card.
Indeed, only certain goods or services related to employee travel can be paid for with this means of payment:
- sale of cycles and pedal-assisted cycles
- retail sale of cycle and pedal-assist equipment
- maintenance and repair of cycles and pedal-assist cycles
- sale of tickets for access to secure cycle parking
- insurance for cycles and pedal-assist cycles
- hire of cycles, pedal-assisted cycles, personal transport devices, mopeds and motorcycles for any length of time and self-service
- sale of motorised personal transport devices
- carpooling services
- self-service rental of electric, rechargeable hybrid or hydrogen vehicles accessible on the public highway
- sale of public transport tickets
- retail sale of fuel
- sale of power or recharging for electric, rechargeable hybrid or hydrogen vehicles.
In summary, employees can use their mobility vouchers only to finance a clean (non-polluting) means of transportation such as a bicycle or electric bike, carpooling, use of public transportation, rental vehicles (scooters, scooters, motorcycles, bicycles and electrically-assisted bicycles), or electric, rechargeable hybrid or hydrogen vehicles in carsharing.
5- What is the interest of this new feature?
As fuel prices soar, the arrival of mobility vouchers in companies is a welcome boost to employees' purchasing power.
This means of payment avoids employees having to advance money and fill out expense reports to be reimbursed.
The mobility voucher also has advantages for companies because :
- it facilitates the payment of the sustainable mobility package to employees
- it comes with tax benefits
The employer's payment of these transport costs is exempt from income tax, contributions and social security contributions up to a limit of €500 per year and per employee, including a maximum of €200 for fuel costs.
In the event that the sustainable mobility package is combined with the compulsory payment of the public transport season ticket by the employer, the tax advantage resulting from the two aids cannot exceed 600 € per year (or the amount of the compulsory payment of the public transport season ticket if this subscription is greater than this amount).