Commuting allowance
Employer coverage of home-to-work travel costs: public transport passes (mandatory at 50%) and fuel or EV charging (optional).
Definition
The commuting allowance (prime transport) refers, in the broad sense, to the employer’s coverage of its employees’ home-to-work travel costs. It actually covers two distinct schemes: the mandatory coverage of part of public transport passes, and the “prime transport” proper, which is optional and covers the fuel or electric-charging costs of the personal vehicle.
In detail
The first scheme applies to all employers: they must reimburse 50% of the cost of public transport passes (train, metro, bus, tram) and public bicycle-hire services taken out by their employees for home-to-work travel (service-public.gouv.fr). This coverage, paid against proof of subscription, is exempt from social contributions.
The second is the employer’s choice: the prime transport contributes to the fuel or EV-charging costs of employees who have no option but to use their personal vehicle, typically because their home or working hours make public transport unusable. This optional coverage is exempt within caps set by regulation, more favourable for electric charging than for fuel (URSSAF, business expenses).
The commuting allowance works alongside the forfait mobilités durables (FMD, France’s sustainable mobility allowance), which covers soft and shared mobility: the two schemes can be combined, with the exemption on the combined prime transport + FMD capped at €900 per year (URSSAF source). Payment can go through a titre-mobilité, a dedicated dematerialised payment solution. For FMD settings and amounts, see our complete guide to the sustainable mobility allowance.
Not to be confused with the mileage allowance, which reimburses business trips made with the personal vehicle: the commuting allowance only concerns the home-to-work journey. Together with a cycling policy and carpooling, these schemes form the toolbox of an employer looking to encourage sustainable mobility.
Frequently asked questions
Is covering public transport passes mandatory?
Yes. Every employer must cover 50% of the cost of public transport passes and public bike-share subscriptions taken out by its employees for the home-to-work journey, upon presentation of proof. Only the "prime transport" covering fuel and charging of the personal vehicle remains optional.
Can the commuting allowance and the sustainable mobility allowance be combined?
Yes. An employee can benefit from both schemes, for example when alternating between car and bicycle depending on the day. The social exemption on the combination is however capped at €900 per year according to URSSAF; beyond that, the amounts paid are added back into the contribution base.
Related terms
- Sustainable mobility allowance, the combinable scheme dedicated to soft mobility
- Titre-mobilité, the dematerialised payment medium for these coverages
- Mileage allowance, the reimbursement of business trips, outside home-to-work travel
