The car, responsible for 4% of greenhouse gas emissions in France, is at the heart of the environmental problem linked to commuting. The Sustainable Mobility Package, introduced in 2020, is an effective solution for encouraging employees to adopt more environmentally-friendly modes of transport. Find out all you need to know about this flagship scheme aimed at reducing the carbon footprint of business journeys.
1. What is the Sustainable Mobility Package?
The sustainable mobility package was introduced on 11 May 2020 as part of the Mobility Orientation Law (LOM), which was adopted in November 2019. The aim of this government measure is to promote the use of more sustainable means of transport, by offering an allowance to employees who opt for alternatives to the private car to get to work. The Sustainable Mobility Package enables employers in both the private and public sectors to encourage the use of bicycles, electric scooters, car-sharing and car-pooling for home-to-work journeys.
Although the use of the Sustainable Mobility Package is optional for companies, it is regularly discussed during Mandatory Annual Negotiations (NAO) in companies with more than 50 employees. The amount of this allowance can be up to €700 per year per employee, and is set either by collective agreement or by a unilateral decision by the employer.
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2. Who is eligible for the Sustainable Mobility Package ?
The Sustainable Mobility Package is aimed at both private and public sector employees, although the conditions and amounts may vary.
- In the private sector, all employees, whether on a fixed-term or permanent contract, temporary work, apprenticeship or sandwich course, are eligible for this allowance. The maximum amount exempt from contributions and tax is €700 per year, including a maximum of €500 for fuel costs when car-pooling. This amount can be increased to €800 if the employer also pays for the public transport season ticket.
- In the public sector, civil servants (state, hospital and local) can benefit from the Sustainable Mobility Package of up to €300 per year, depending on the number of days they use sustainable transport :
- €100 for 30 to 59 days ;
- €200 for 60 to 99 days;
- €300 for 100 days or more.
Please note : Some employees, such as those with company accommodation or a company car, are not eligible for the Sustainable Mobility Package.
3. Sustainable Mobility Package and kilometre-based bicycle allowance
Since 2016, the kilometre-based cycling allowance has enabled employees to benefit from financial assistance paid by their employer for journeys made by bike between their home and workplace. This aid, which can be combined with the Sustainable Mobility Package, can amount to up to €500 a year in the private sector and €200 in the public sector, with a reimbursement of €0.25 per kilometre travelled. Since May 2020, it has been possible to switch from a reimbursement per kilometre to a monthly or quarterly package as part of the Sustainable Mobility Package.
4. How do I apply for the Sustainable Mobility Package ?
To benefit from the Sustainable Mobility Package, private-sector employees and public-sector employees must apply to their employer. It is important to emphasise that the allocation of this package is not automatic and depends on the company’s mobility policy. Each employer can establish its own criteria for payment as part of its Corporate Social Responsibility (CSR) policy.
Applications for the Sustainable Mobility Package must be made using a dedicated form before the end of the calendar year (31 December), and must be renewed each year.
5. Sustainable Mobility Package: what supporting documents should you provide to your employer to be reimbursed ?
The application of the Sustainable Mobility Package, according to the decree of 9 May 2020, requires employees to provide certain supporting documents to prove the use of sustainable modes of transport. This evidence may include:
- A sworn declaration that you use your own vehicle;
- An invoice or receipt of payment for a car-sharing service or bike hire;
- Proof of season ticket for sustainable transport.
The employer may pay the Sustainable Mobility Package monthly on the payslip or in the form of mobility vouchers, similar to meal vouchers. For public-sector employees, payment is made in the year following the year in which the declaration on honour is submitted.
By integrating a business expense management tool like Vertical Expense, it becomes even easier to track and manage reimbursements linked to the Sustainable Mobility Package, while at the same time making it easier to manage bicycle mileage allowances.
