The surge in fuel prices is affecting drivers across the board, especially those who need their car to work. To help offset this rise, targeted aid programs are in place. One example is the new employer fuel allowance, a €1,000 boost. Here’s who can benefit.
A boost to the employer fuel allowance to €1,000
The government announced on Tuesday, September 22, new support measures around fuel prices. The aim is to assist drivers as prices keep rising in this period. A major issue because it impacts purchasing power and the economy of certain sectors in society. Among the announced aids, there is the raising of the ceiling for the tax-exemption of the employer fuel allowance. This allowance is not paid automatically and, moreover, does not apply to all employees.
Moreover, this isn’t the first time this allowance has been boosted. In May, it was raised to €600 from the base of €300. This allowance is non-taxable and is exempt from all social security contributions.
From an employer’s perspective, this allowance presents a credible alternative to raising salaries, even though there is no obligation to grant this fuel allowance. It is therefore essential to gather information in advance.
Some criteria to meet
It is up to the employer to choose, as they see fit, the eligibility criteria for the allowance. These criteria can include the distance of the employee from the workplace, the actual use of the employee’s personal vehicle, etc. The same goes for the payment terms or the amount of the allowance. In any case, to be eligible for this allowance, you must be an employee who uses your personal vehicle to make commutes between home and work. Consequently, people with a company car cannot claim this allowance.
The downside is that this option is not mandatory. Not all companies participate. It’s even a relatively small share that implement the fuel allowance. For micro-enterprises, it would be between 10 and 15%, while larger companies hover closer to 30%. These figures, however, still need to be confirmed with an official study.
A little boost that would be welcome for employees. Indeed, diesel is currently at €2.404 per liter (roughly $2.64 per liter, about $9.95 per gallon at current exchange rates), SP95 at €2.167 per liter (roughly $2.38/L, about $9.04 per gallon), and SP98 at €2.270 per liter (roughly $2.50/L, about $9.46 per gallon). These figures continue to climb and worry drivers.
In addition to the employer fuel allowance, the government has opened a €100 aid to an additional 2.5 million people.
