Commuting to and from work accounts for 4% of greenhouse gas emissions in France: the cause is still too much car use ! To provide an effective response to the environmental issue, the Sustainable Mobility Package has been encouraging all employees to use soft mobility to commute to work since 2020. Explanations.
1. The introduction of the Sustainable Mobility Package: explanation
The Sustainable Mobility Package was introduced on 11 May 2020 as an extension of the Mobility Orientation Law (LOM), adopted in November 2019. One of the aims of this government measure is to promote the use of means of transport other than the car to get to work. It therefore offers employers in both the private and public sectors the possibility of paying an allowance to employees who use alternative, sustainable modes of transport such as bicycles, electric scooters, car-sharing or car-pooling to commute to work.
Although the use of the Sustainable Mobility Package remains optional for companies, it is regularly added to the agendas of the Compulsory Annual Negotiations of companies with more than 50 employees. The amount of the allowance is negotiated by collective agreement, industry agreement or unilateral decision by the employer, up to a maximum of €700 per year per employee.
2. Who is eligible for the Sustainable Mobility Package ?
The Sustainable Mobility Package is aimed at both private and public sector employees. However, the conditions of application and the amounts vary according to the group to which you belong :
In the private sector, all employees on fixed-term or indefinite-term contracts, temporary contracts, work placements, apprenticeships or sandwich courses, whether full-time or part-time, are entitled to FMD compensation. The maximum amount exempt from contributions (for the company) and tax (for the employee) is €700 per year per person, including a maximum of €500 towards fuel costs for car-pooling. This amount can be increased to €800 when the employer pays for the Sustainable Mobility Pass and the public transport season ticket.
In the public sector, employees (and contract staff) in the state, hospital and local civil services are eligible for the Sustainable Mobility Package of up to €300, broken down as follows :
- 100 from 30 to 59 days’ travel,
- 200 from 60 to 99 days,
- 300 for 100 days or more.
Please note : However, employees who have company accommodation at their place of work, or who own a company car, or who have access to free public transport, or who receive a special allowance because of a disability, are not eligible for the Sustainable Mobility Package.
3. Sustainable Mobility Package and kilometre-based bicycle allowance
Introduced in 2016, the kilometre allowance for cycling is a financial aid paid by employers to employees who cycle all or part of their journey to work. This allowance can cover the purchase, maintenance or repair of a bicycle, and can be combined with public transport season tickets, provided that the two subsidies do not cover the same journeys.
Employers can reimburse employees up to €0.25 per kilometre travelled, up to a maximum of €500 per year in the private sector and €200 in the public sector. And since May 2020, employees have been able to switch from 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 ?
In concrete terms, to benefit from the Sustainable Mobility Package, private-sector employees and civil servants alike must apply to their management. Please note that the employer is not automatically entitled to the WDF. This will depend on the company’s mobility policy and its degree of investment in a CSR approach.
To do this, you need to fill in a specific form describing the conditions laid down by the company :
- The amount of the MDF ;
- Types of transport selected ;
- Any accumulation with fuel costs ;
- Evidence to be provided ;
Please note : The application must be made before the end of the calendar year, i.e. 31 December. Renewal of the MDF is not automatic. The employee or agent must reapply each year.
5. FMD : what supporting documents should you provide to your employer in order to be reimbursed ?
Subject to the LOM law, the application of the Forfait Mobilité Durable is fairly flexible and leaves some room for manoeuvre to the company, which must, however, have certain supporting documents in its possession. It is therefore up to the employer to determine the rules for verifying that the employee has used a sustainable means of transport to get to work.
If we refer to the decree of 9 May 2020, the Sustainable Mobility Package is paid on the strict condition that the sums allocated are deployed in accordance with their purpose, in both the private and public sectors. By way of example, here are the documents that employers are entitled to request :
- A sworn declaration that you use your own vehicle;
- A receipt for an invoice or payment for a car-sharing service, bike hire, etc. ;
- Proof of season ticket ;
- Proof of use of an electric car (purchase invoice, insurance, maintenance, etc.).
Private sector employees can receive the Sustainable Mobility Package in two ways :
- Paid monthly on the payslip (the amount covered must appear clearly on the payslip)
- Allocated in the form of a mobility voucher (similar to restaurant vouchers)
Please note : For public-sector employees, the Sustainable Mobility Package is paid in the year following the year in which the declaration on honour is submitted to the employer.
With a business expense management solution such as Vertical Expense, it’s easier to manage your employees’ various expenses. So you can manage your employees’ mileage-based cycling allowance and easily take into account the Sustainable Mobility Package !
