Mandatory reimbursement of public transport subscriptions: the exemption of up to 75% is renewed!
Mandatory reimbursement of public transport subscriptions: the exemption of up to 75% is renewed!
As a reminder, employers are required to cover 50% of the cost of their employees' public transport subscriptions. This reimbursement is exempted from social security contributions and income tax. However, if the employer reimburses more than 50%, the exemptions do not apply to the part exceeding this threshold.
In order to support employees' purchasing power, the Finance Act of 16 August 2022 introduced a temporary preferential regime encouraging employers to cover up to 75% of their employees' public transport subscriptions for the years 2022 and 2023. This offered the possibility to increase the exempted reimbursement ceiling to 75% without changing the legal obligation to cover 50%. Companies could thus increase their reimbursement and benefit from this favourable regime without being forced to do so.
This measure had been extended in 2024 but had not yet been renewed for 2025.
Please be careful:
Please note that as soon as the employer decides to pay more than the legal minimum for employees' transport subscription, it allows them to benefit from an additional benefit. This benefit, applied to all employees concerned for several months, then becomes a company practice.
The questioning of this company practice granted and therefore the reduction from 75% to 50% of the transport subscription reimbursement requires the implementation of a denunciation of the practice procedure, involving in particular, collective and individual information of employees and respect with a reasonable notice period. Given the fact that it is a monthly benefit, a period of 3 to 6 months would seem sufficient.
It is therefore to consider these consequences carefully if you want to seize this advantage.
Our teams can advise you on how to manage these new measures. Do not hesitate to come back to us if you wish to be accompanied.
This measure had been extended in 2024 but had not yet been renewed for 2025.
- It has now been done: the finance law for 2025 maintains this measure for the year 2025! The favorable tax exemption of up to 75% has been extended for an additional year.
Please be careful:
Please note that as soon as the employer decides to pay more than the legal minimum for employees' transport subscription, it allows them to benefit from an additional benefit. This benefit, applied to all employees concerned for several months, then becomes a company practice.
The questioning of this company practice granted and therefore the reduction from 75% to 50% of the transport subscription reimbursement requires the implementation of a denunciation of the practice procedure, involving in particular, collective and individual information of employees and respect with a reasonable notice period. Given the fact that it is a monthly benefit, a period of 3 to 6 months would seem sufficient.
It is therefore to consider these consequences carefully if you want to seize this advantage.
Our teams can advise you on how to manage these new measures. Do not hesitate to come back to us if you wish to be accompanied.