As the climate crisis accelerates and the benefits of sustainable transport become clear, some European countries are requiring employers to pay for public transport for their employees.
Transport remains a thorn in the side of Europe’s environmental ambitions.
The sector accounts for a quarter of EU emissions and yet is one of the only sectors to have seen an increase in emissions in recent years.
More needs to be done to replace people and goods (or at least the way transport is powered) with ambitious climate goals.
What if a simple measure could encourage a shift away from private cars and cost the taxpayer almost nothing?
Yes, this is what several European countries have implemented in recent years.
To increase the attractiveness of sustainable transport and ease the financial burden on citizens, some European governments have required employers to pay for public transport.
This usually works by purchasing your monthly or annual travel subscription as usual, presenting your receipt to your company, who will reimburse you for part or all of the amount.
But rules differ between European countries, so let’s take a look at some of the best rules on offer across the continent.
Most public transport costs are paid in Belgium and France
Not only is Belgium the king of French fries and beer, it also has a very generous public transport compensation system.
There is a mandatory minimum of 75% of costs paid by the employer. In a city like Brussels, the monthly subscription fee is €50, which means that you will only have to pay €12.50 per month to get access to all metros, trams and buses. Good!
Across the border, Belgium’s neighbor France has also introduced mandatory national compensation rules. Even if this is not overlooked, it is not as good as the French workers in force in Belgium are entitled to a minimum of 50% of public transport costs.
In Central Europe, Slovenian employers must cover the travel expenses of their employees to and from work. This support is provided in accordance with the collective agreements in force in the companies and is usually in the form of a public transport ticket or an amount per kilometer for people traveling by car.
Where in Europe is public transport free?
In Austria, public transport is now free for all employees of the city of Vienna. The country’s non-municipal workers may not be so well off, but regardless of the means of transport they use, they are still entitled to a tax deduction of up to €463 for their commuting expenses.
Of course, some places go further than that. Luxembourg offers free public transport without any restrictions from 2020. Big cities like France’s Montpellier and Estonia’s Tallinn have also adopted this measure.
There are also many countries where there is no legal obligation to cover transport costs, but many companies, especially larger companies in major cities, do so anyway. This is the case in Italy, Poland, Germany and the Netherlands.
What are the benefits for employers?
Making public transportation cheaper for workers is not only good for the environment, but can also be a good way to attract and retain workers. As office culture has weakened in recent years, offering incentives to employees can also encourage them to come to the office more often.
It can also encourage more employees to take public transportation and reduce the number of parking spaces a business needs, which can save money.
Some European countries offer “climate tickets” that allow unlimited travel within the country by regional train as well as urban public transport. This can reduce travel costs for business trips.
Reducing the use of private cars can also help reduce air pollution and make cities healthier and safer for their residents.