Sustainable mobility package (FMD)
French tax- and social-charge-exempt employer allowance (up to €800/year) for eco-commuting: carpooling, public transit, cycling, electric vehicles.
Definition
The sustainable mobility package (FMD) is a French tax and social-security exemption introduced by the 2019 Mobility Orientation Law (LOM). It lets employers reimburse employees’ home-to-work and business travel costs, up to €800 per year per employee, free of social charges and income tax. The cap rises to €900 for employees who hold a public-transit pass.
In detail
The FMD is open to every employer, regardless of size or sector, who wants to encourage staff to use low-carbon transport: carpooling, public transit, cycling, electric or plug-in hybrid vehicles. The company pays a monthly or annual allowance, exempt up to the statutory cap.
Who it covers
All private-sector employees are eligible, including fixed-term and temp workers. Civil servants qualify under certain conditions. The exemption applies as soon as the employer covers all or part of the travel costs.
How it works in practice
Employers can pay the FMD as:
- Reimbursement of actual costs against receipts
- A flat monthly allowance
- Provision of electric vehicles
Legal and tax framework
The FMD is codified in the French General Tax Code (CGI). It exempts travel-cost reimbursements from income tax up to the cap. The exemption is cumulative with other mechanisms such as the bicycle mileage allowance (indemnité kilométrique vélo).
Social-security and URSSAF caps
The FMD is equally exempt from social charges within the same limits:
- €800/year for the standard package
- €900/year with a public-transit pass
Worked example
A 50-person SME rolls out a €60/month FMD per employee:
- Annual cost to the company: €60 × 12 × 50 = €36,000
- Social-charge savings (~45%): €16,200
- Tax benefit for employees: exempt up to €800/year
- Uptake: 75% of staff use the FMD
Frequently asked questions
Is the FMD mandatory for companies?
No, the FMD is optional. However, since 2024 companies with more than 50 employees must offer an employer mobility plan, which often drives FMD adoption.
Can the FMD be combined with the bicycle mileage allowance?
Yes. The FMD and the bicycle mileage allowance are cumulative: the FMD covers all modes, and the bike allowance adds a per-kilometre payment for cycling commutes.
Related terms
- Credit mobility, financing that complements the FMD
- Employer mobility plan, mandatory for 50+ employees
- Mobility pass, employer-funded public-transit subscription
