Now employers can reimburse 19 cents per kilometer without employees having to pay tax on it.
The cabinet wants to increase that compensation to 23 cents per kilometer during this term of office, but employers think it is taking too long and want the compensation to be increased more quickly.
Now higher compensation costs money
Now employers can already reimburse an amount higher than 19 cents per kilometre, but then the employer has to pay extra social contributions on this and employees have to pay income tax on it, Niek Hinsenveld, researcher of the employers’ association AWVN, outlines the problem.
“So it’s more expensive for employers and employees get about half less.”
Tight labor market
Four out of five employers are concerned that employees who depend on the car to get to work will be squeezed, according to Hinsenveld. As a result, employees cannot come to work, or it becomes more difficult for them financially, he says.
“There are employees who live further away from their work and the labor market is now very tight, so competition for good staff is very high. You see that employees want to work closer to home.” Half of the employers are already considering raising the compensation or have already done so, according to Hinsenveld.
Not increased since 2006
If the tax-free travel allowance is not increased sooner, employers will look at alternative options, such as cycling to work or traveling by public transport, but that is not the solution for every employer, says Hinsenveld.
“It will eventually be arranged, but this travel allowance has not been increased since 2006, it is time to do this.”
CNV: higher home work allowance
Due to inflation, the homework allowance for employees has to increase from 2 to 3 euros per day. That is the view of the trade union CNV. A survey by the union among a thousand home workers shows that the current compensation of 2 euros per day is not sufficient due to the persistently high inflation.
More than six in ten respondents are not satisfied with 2 euros a day. This tax-free allowance was established two years ago, but in the meantime everything has become considerably more expensive, explains CNV. In addition to energy, the homeworker also spends more on coffee, tea, toilet paper and water.
CNV emphasizes that one in three homeworkers receives no compensation at all. The union calls this a significant saving for employers. More than a quarter of home workers do receive a cost-effective compensation.