European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure FR-2022-1/2852 – measures in France

Increased support for employees costs of transport

Augmenter les plafonds d’exonération des frais de transport

Country France , applies nationwide
Time period Temporary, 01 January 2022 – 31 December 2023
Context War in Ukraine
Type Legislations or other statutory regulations
Category Responses to inflation
– Support for fuel expenses
Author Frédéric Turlan (IRshare) and Eurofound
Measure added 13 September 2022 (updated 09 November 2022)

Background information

The government has taken several measures to improve the support for employee's transport costs, in particular by modifying taxation or exemptions from social security contributions on salaries. The aim is to encourage employers to support employees' purchasing power by covering their transport costs more.

The measures concerning the social and tax regime for employee transport costs were taken within the framework of the amended Finance Act No. 2022-1157 of 16 August 2022.

Content of measure

The Act will apply for the years 2022 and 2023. It increases the exemption ceiling for the reimbursement by the employer of fuel costs incurred by employees for their home-to-work travel. This means that employers will be able to reimburse fuel costs of up to €400 per year (instead of €200), without paying social security contributions on these amounts.

It increases the overall exemption ceiling for the transport bonus (prime transport) from €500 to €700 (and to €900, including €600 for fuel costs in the overseas territories). The bonus corresponds to the employer covering the cost of fuel and power for electric, rechargeable hybrid or hydrogen vehicles incurred by employees when travelling between their usual residence and their place of work.

It expands the eligibility of new employees for the transport bonus by suspending the usual conditions for coverage (residence or workplace not served or outside the scope of a compulsory mobility plan, working hours that do not allow use of a public transport system); it allows to combine the transport bonus with the compulsory payment by the employer of 50% of the price of public transport passes; it increases the exemption ceiling for the sustainable mobility package (forfaire mobilité durable) from €500 to €700; it extends the tax and social security benefits attached to the compulsory payment by the employer of public transport or public bicycle rental service costs to the optional payment (in excess of 50%) of these costs, up to a limit of 25% of the price of season tickets.

At the same time, on a permanent basis, the ceiling for combining the sustainable mobility package with the cost of public transport passes or public bicycle hire services has been raised from €600 to €800.

Finally, the accumulation of mileage allowances (indemnité kilométrique) reimbursed to employees with those for carpooling is allowed on the basis of supporting documents.

Use of measure

As this is a new measure, there is no data available.

Target groups

Workers Businesses Citizens
Employees in standard employment
Workers in non-standard forms of employment
Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
Social insurance
Companies
Employer
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

No information.

Views and reactions

About all the measures adopted to increase the purchase power of workers, all the trade union organisations, and in particular the five representative trade union confederations and the organisations representing young people, denounced, in a declaration of 21 July, the legislative measures announced by the government, including the generalisation of profit sharing.

They consider 'that wages are part of the sharing of wealth' and they 'are unanimous on the fact that the priority issue must be to increase wages, pensions, minimum social benefits and student grants'. However, the trade unions denounce the fact that 'a succession of one-off measures, mainly financed by the State, cannot constitute a sufficient package to respond to the emergency'. Moreover, the trade unions and youth organisations point out that 'these exemptions and reductions in contributions are undermining our collective social protection system'.

On the employers' side, the measures presented by the government are better accepted (see Press article in Source box).

It has to be noticed that the government has issued a « package » of measure through 2 law adopted on 16 August. Instead of creating a factsheet of the package, the national correspondent has created FS for each relevant measure. But on their side, the trade unions have published a global and common position to the whole package and not measure by measure.

Sources

  • 16 August 2022: Loi n° 2022-1157 du 16 août 2022 de finances rectificative pour 2022 (www.legifrance.gouv.fr)
  • 31 August 2022: A la grand-messe du Medef, les patrons prêts à utiliser la boîte à outils de la loi «pouvoir d'achat» (www.usinenouvelle.com)

Citation

Eurofound (2022), Increased support for employees costs of transport, measure FR-2022-1/2852 (measures in France), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FR-2022-1_2852.html

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. As winter approaches, preventing and addressing energy poverty becomes a priority. This article summarises the policy responses as reported in Eurofound’s EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.