The Mileage Allowance per kilometre [reiskostenvergoeding] is a Dutch tax ruling. Employees can opt in to receive a home to work Mileage Allowance for daily commuting between home and work and vice versa from work to home. The distance will be determined on the basis of the most usual route between home and work and back from work to home. The reimbursement of the Mileage Allowance has to be processed via payroll based on tax legislation in the Netherlands (it is not allowed to process this via an expense system such as Concur).
The allowance is 0.19-euro cents per kilometre travelled between home to work, and work to home, to a maximum reimbursement for not more than 128/214-day per year on a full-time employment. Employees travelling to work for less than 5 days per week will receive a pro rata allowance. This means that if the employee travels to the workplace for at least 128 days a year, the travel allowance may be calculated on an annual basis as if your employee travels on 214 working days.
From January 1, 2022, employers can still provide a fixed amount, but only if the employee commutes to the office for at least 36 weeks or 128 days per year. In general, if the employee has an agreed working pattern of 3 days or more commuting to the office agreed per week, the employee is eligible for the fixed monthly amount as mentioned above.
If the employee has a working pattern for less than 36 weeks or 128 days per year commuting to the office, then the actual days commuting to the office have to be registered based on their actual days commuted to the office. Employees will have to inform the employer when they would have been in the office each month and payroll will calculate based on their actual travel days the correct amount of mileage allowance. Payroll will pay out the actual travel days to the office, based the information provided by the employee, after a full month of working.
This change in the Mileage Allowance per kilometre will lead to more admin work for the employees, payroll and HR departments.
Read more about the 2023 Change Fixed Mileage Allowance in the Netherlands.