How much of the employees' fuel costs can the employer cover in France?

The amount of reimbursement of fuel costs by the employer must be set by the collective agreement, or by an unilateral decision of the employer.

Reimbursement of fuel costs can take the form of payment of a “transport or fuel allowance” or reimbursement of mileage costs by the employer.

The law provides for an exemption from reimbursement of gasoline costs by the employer up to a certain limit.

Transport or fuel allowance

Reimbursement of transport costs by the employer or power costs for electric vehicles (rechargeable hybrids or hydrogen) is exempt from social security contributions up to an annual limit of:

– €400 per employee for fuel costs in 2023;

€700 per employee for power costs for electric, plug-in hybrid or hydrogen vehicles in 2023.

When the reimbursement of fuel costs by the employer takes the form of a “transport or fuel allowance”, the latter must be able to:

to justify compliance with the conditions of care by the employee (distance between home and place of work, employee’s working hours);
to present a photocopy of the registration certificate of the employee’s personal vehicle.

💡 Good to know: no proof of expenditure is required for the employer to benefit from the exemption from social security contributions for the year 2023, when the reimbursement of employees’ gasoline costs does not exceed the amounts established by law.

How much of the employees’ fuel costs can the employer cover in France?

Transport or fuel allowance

💡 Good to know: no proof of expenditure is required for the employer to benefit from the exemption from social security contributions for the year 2023, when the reimbursement of employees’ gasoline costs does not exceed the amounts established by law.