Sustainable Mobility Allowance 2026: full guide

In 2025, nearly one in two French employees said they wanted to use greener ways to get to work. The Sustainable Mobility Allowance (SMA / FMD) is now a social and environmental tool. It is also a real business asset for companies that care about employer appeal and CSR impact.

Why the Sustainable Mobility Allowance matters in 2026

The Sustainable Mobility Allowance (FMD) started in 2020. Since then, it has steadily changed the way employees get to work. Fuel costs are rising, and the rules on indirect emissions (Scope 3) are getting stricter. As a result, the allowance is now a core part of company CSR plans.

Sustainability reporting rules (CSRD, DPEF) ask for more openness about emissions from commuting. Adding the SMA to company strategy is no longer a token gesture. It is a measurable investment in carbon performance.

The regulatory framework and SMA amounts for 2026

In 2026, the SMA is still governed by the French Labour Code and by the guidelines of URSSAF, the French social security authority. Companies can pay an allowance free of social contributions and income tax. This applies up to a set yearly ceiling, which you should check each year.

Year	Tax-exempt ceiling	Additional notes
2024	up to €800	Cumulation with transit pass possible subject to conditions
2025	to be confirmed	Ceiling may change under the annual Finance Act
2026	SMA amount 2026: to be confirmed	Monitor the next URSSAF update

Eligible modes include personal bikes, e-bikes, electric scooters and carpooling (as driver or passenger). Public transport outside a subscription also counts, as do some shared mobility services (free-floating, car-sharing). Platforms such as Swile, Edenred or Greenway offer built-in tools to manage the allowance.

Step 1: Deciding to implement the Sustainable Mobility Allowance

To set up the Sustainable Mobility Allowance, you need a collective agreement. Without one, the employer can decide alone after consulting the works council (CSE). The CHRO and CFO must fit the measure into the company's quality-of-life and CSR policies. To do so, they define who is eligible, the amount paid and the proof required.

Aligning HR and CSR strategy

The goal is twofold: encourage low-carbon commuting and improve employee well-being. With the SMA, you bring your non-financial reporting and your employee benefits into line.

Setting amounts and payment schedules

Payment can be monthly, quarterly or yearly. Some companies choose a mobility credit that staff spend with a dedicated card or app. This makes payroll and accounting easier to track.

Step 2: Funding, managing and documenting eligible mobility

Good SMA management depends on traceability: proof of eligibility, records of journeys and accounts kept in one place. The CFO plays a key role here. They control cash flows and make sure the company meets the URSSAF exemption rules.

Traceability and compliance

Each company must set its own criteria: home-to-work distance, a minimum number of journeys, or a signed declaration of use. Under the rules of the French tax authority (DGFiP), you must keep supporting documents for five years.

Managing through a digital platform

Tools like Greenway track the allowance automatically and link spending to CSR policy. They also gather the Scope 3 indicators for employee commuting in one place. A link to the ERP makes accounting and expense matching simpler.

Step 3: Supporting adoption, the Novalum case study

Take Novalum as an example. It is a mid-sized industrial company in Toulouse with 530 employees, and it makes low-carbon public lighting. In 2024, it wanted to strengthen its employer mobility plan and cut solo car commutes by 30%.

Diagnostic phase

An internal audit showed that 60% of employees live within 8 km of work. Yet 70% still drove there. The SMA stood out as a good incentive to change those habits for good.

Operational rollout

Novalum chose to offer a yearly credit of €600, paid digitally on a corporate card. Through a partnership with Greenway, HR set up automatic monthly tracking. This made cost-centre accounting simpler and made it easier to feed ESG indicators.

Carbon footprint and employee well-being

In less than a year, the company cut commuting emissions by 15%. Employee satisfaction scores also rose clearly. The SMA became a pillar of Novalum's carbon roadmap and employer brand.

Mini-FAQ on implementation and transport modes

Which transport modes are covered by the SMA (bicycle, scooter)?

The SMA covers bikes (standard and electric) and personal light electric vehicles such as e-scooters. Under some conditions, it can also cover purchase and maintenance costs.

How do I determine the right SMA amount for 2026?

The SMA amount for 2026 will be confirmed in the next URSSAF update. Plan a budget close to previous years. Then adjust it for your CSR targets and the number of eligible employees.

Can the SMA be combined with a public transport subscription?

Yes, you can combine them up to an overall tax-free ceiling. Check how the amounts are split in payroll or in the platform you use.

Is implementing the Sustainable Mobility Allowance mandatory?

No, but it is strongly advised for companies with more than 50 employees on a single site. It can be part of the employer mobility plan that is mandatory for organisations of that size.

How do I justify actual SMA use to URSSAF?

A signed declaration or proof of subscription is usually enough. But each company is free to set its own internal process to remove the risk of a tax reassessment.

Conclusion and management outlook

The Sustainable Mobility Allowance is now a practical tool for companies in their ecological transition. Its value lies as much in the employee experience it creates as in the carbon data it produces.

CSRD compliance is taking hold, and transparency rules are getting tighter. The SMA is becoming a strategic indicator. It is a management tool to compare with other employee benefits and with responsible spending policies.