With the climate crisis gaining pace and the benefits of sustainable forms of transport becoming increasingly clear, some European countries are making a bold move: requiring employers to foot the bill for their employees’ public transport. Transport remains a major obstacle to Europe’s environmental ambitions. The sector accounts for a quarter of the EU’s emissions and is one of the few that has seen emissions increase in recent years. With ambitious climate targets in place, Europe needs to fundamentally change how people and goods are transported, or at least how transport is fueled. One simple step to encourage a shift away from private cars, without costing taxpayers much, is what several European countries have implemented in recent years.
To increase the attractiveness of public transport and alleviate the financial burden on citizens, some European governments have mandated employer contributions towards employee public transport costs. This typically involves employees purchasing their monthly or annual travel subscriptions as usual and then submitting receipts to their company for reimbursement, either partially or fully. However, regulations vary across European countries, leading to a diverse range of schemes.
Belgium, renowned for its fries and beer, also boasts a generous public transport reimbursement program. Employers are legally required to cover at least 75% of employee transport costs. In a city like Brussels, where a monthly pass costs €50, employees only need to pay €12.50 per month to access all metros, trams, and buses.
Across the border, France also has a national mandatory rule on reimbursements. While not as generous as Belgium, French employees are entitled to a minimum of 50% reimbursement for their public transport costs.
Moving into Central Europe, Slovenian employers must cover the costs of employee journeys to and from work. This is typically implemented through collective agreements in workplaces, either by paying for public transport tickets or providing a fixed amount per kilometer for car commuters.
In Austria, public transport is now free for all employees working for the City of Vienna. Non-municipal employees may not enjoy the same benefit, but they are still eligible for tax-free reimbursements for their home-to-work travel costs, up to €463, regardless of the mode of transport.
Some countries take it even further. Luxembourg has had free public transport for everyone, with no caveats, since 2020. Major cities like Grenoble in France and Tallinn in Estonia have also embraced this policy.
On the other hand, many countries lack a legal obligation to cover transport costs, but many companies, especially larger ones in major cities, still offer reimbursement. This is common in countries like Italy, Poland, Germany, and the Netherlands.
Beyond environmental benefits, making public transport more affordable for workers can also attract and retain staff. As office culture has evolved in recent years, providing employee incentives can encourage them to return to the office more frequently. It also incentivizes more workers to opt for public transport, reducing the need for parking spaces and saving companies money.
Some European countries offer ‘climate tickets’ that allow unlimited travel across the country using regional trains and city public transport. This can simplify travel expense management for work trips. Reduced private car use also contributes to cleaner air and healthier, safer cities for residents.
By shifting towards employer-funded public transport, Europe is taking a significant step towards a more sustainable and efficient future. This trend not only benefits the environment but also attracts and retains talent, making it a win-win situation for both employers and employees.
