Employers in the EU can now offer up to 1,000 euros annually in fuel allowances, doubling the previous limit until 2026.
Fuel allowance increase announced
The ceiling for the fuel allowance paid by employers has been raised from 600 to 1,000 euros net per year until December 31, 2026. This change aims to provide more financial support to employees for transportation costs.
New decrees published
Two decrees were published on October 20 to implement the increased fuel allowance. These official documents outline the specifics of how the new allowance will be applied and managed by employers.
Impact on employers and employees
The increase in the fuel allowance is expected to benefit both employers and employees. Employers will have to adjust their payroll systems to accommodate the higher amount, while employees may see a reduction in their overall transportation expenses.
Duration of the measure
The raised fuel allowance will remain in effect until December 31, 2026. This provides a clear timeframe for employers to plan and adjust their financial strategies accordingly.
