The French Labour Code specifies that all employers, regardless of the size of the company, must cover part of the cost of “subscription tickets purchased by [their] employees for their travel between their usual residence and their place of work”, in the case of “public passenger transport” (i.e. public transport) or “public bicycle rental services”.  

Covering employee transport costs is therefore an important and widespread obligation for employers operating in France. In this article, we outline further details of the legal framework, together with the key updates that employers need to be aware of.  

It is mandatory for employers to cover employee transport costs, provided that the employee has one of the following: 

• An annual, monthly, weekly or tacitly renewable card or subscription with a limited or unlimited number of journeys issued by SNCF, RATP, a public transport company or other public transport authority; or 

• A subscription to a public bicycle rental service. 

However, employers are not required to cover the fuel costs of employees travelling to work. Please also note that individual tickets purchased do not need to be covered by the employer. 

Employers must contribute towards at least 50% of the cost of the employee’s subscriptions. Coverage is based on a second-class fare for the shortest journey between the employee’s home and workplace. 

This obligation applies for the entire journey even if several subscriptions are necessary to complete it (for example, using a train and bus). 

It is also important to note that:  

• The employer’s coverage of at least 50% is excluded from the basis for calculating social security contributions, as well as the general social contribution (CSG) and the contribution to the reduction of social debt (CRDS). However, the adoption of the new so-called ‘finance law’ in France this year allows for a return to the rate of exemption from social security contributions of up to 75% of the cost of season tickets. 

• The coverage of employee transport costs differs depending on working hours:  
  • if an employee works at least half of the legal or contractual weekly working time (i.e. 35 hours), employers must cover their subscriptions as if they are a full-time employee (i.e. up to 50%);  
  • if the employee’s working time is less than this, the support is calculated in proportion to the hours worked. 

Yes, employers can refuse to contribute to transport costs according to the Labour Code, “when the employee already receives compensation representing expenses for travel between their residence and their place(s) of work of an amount greater than or equal to the 50% coverage.“ 

To proceed with the payment, employees must provide the employer with or show them their transport ticket. The employer must then reimburse the portion due to them as soon as possible and, at the latest, by the end of the month following the validity of the transport ticket. For annual subscriptions, the cost is spread out monthly. 

If an employer changes the terms of proof or reimbursement of transport costs, under the Labour Code they must notify their employees at least one month before the date that has been set for the change. 

The employer is not obliged to contribute to the personal transport costs of its employees. However, it may decide to compensate them in whole or in part. This can be established by a company agreement or by a unilateral decision in accordance with the relevant provisions of the Labour Code. This will then benefit all employees of the company, including trainees. 

This support can take several forms: 

• payment of a bonus covering all or part of the fuel or power costs of an employee’s electric vehicle; 

• payment of mileage allowances calculated according to the professional expenses scale. 

It should also be noted that:  

• As of 1 January 2025, the annual tax exemption ceiling for the fuel premium has been raised to EUR 300, up from EUR 200. 

• Regarding the electric vehicle charging bonus, its exemption ceiling has also been raised by EUR 100, from EUR 500 to EUR 600 per year. 

With the sustainable mobility package (FMD), employers can cover, without obligation, the travel costs of employees who commute to work using the following means of transport: 

• a bicycle, with or without assistance; 

• carpooling as a driver or passenger; 

• public passenger transport (other than that covered by the mandatory coverage of subscription costs); 

• other shared mobility services; 

• a moped (known as a category L1e or L2e vehicle under the Labour Code), a motorcycle (category L3e or L4e vehicle under the Labour Code), and a personal transport device (motorised or non-motorised personal transport device) for rental or self-service; 

• since 1 January 2022, a personal transport device, motorised or not, that is owned by the employee (such as a scooter). 

Coverage of these costs takes the form of a flat-rate allowance, exempt from social security contributions, up to a limit of EUR 700 per year per employee in 2024, and EUR 900 for Guadeloupe, Guyana, Martinique, Réunion and Mayotte. 

When the employee combines the sustainable mobility package with the mandatory coverage of public transport costs, the exemption ceiling is raised to EUR 900 (a change that has now taken effect as of 1 January 2025). 

It should also be noted that companies that provide their employees with a fleet of bicycles free of charge for their journeys between home and work can benefit from a reduction in their corporate tax, up to a limit of 25% of the costs incurred for the purchase or maintenance of the fleet of bicycles or electrically assisted bicycles. 

The coverage of employee transport costs is a complex area and so it is important that employers fully understand the above framework to ensure full compliance. The key takeaways can be summarised as follows:  

• Mandatory coverage: Employers must cover at least 50% of the cost of public transport or public bicycle rental subscriptions for employees commuting to work, subject to the employee’s weekly working hours.    

• Exemptions from contributions: The mandatory coverage is excluded from social security contributions, the CSG, and the CRDS. Employers should also familiarise themselves with the new finance law that allows for exemption rates of up to 75%. 

• Optional support: Employers can support other transport costs if they wish, such as fuel or electric vehicle charging, through company agreements or unilateral decisions. This support can be provided via bonuses or mileage allowances. 

• Sustainable mobility package: Employers in the private sector may wish to consider offering the sustainable mobility package. 

• Potential tax benefits: Companies providing a fleet of bicycles for employee commutes can benefit from a corporate tax reduction of up to 25% of the costs incurred for the purchase or maintenance of the fleet.