In the Netherlands, it is normal to receive travel expenses when you have to travel to work. The amount differs and is determined by your contract or the CAO. There are two types of reimbursement. One is a mileage allowance. The other is a public transport allowance. Sometimes you can choose between the two and sometimes the employer decides which reimbursement you get. 

Mileage allowance

If you receive a mileage allowance, it does not matter how you travel to work. One car uses more gas than the other. You do not have to hand in your receipts for petrol. You can even go to work by bicycle, and then you will make a profit on your mileage allowance. Or you can carpool and travel for free. For commuting and business trips, your employer can give you a tax-free allowance of EUR 0,19 per kilometre, regardless of the means of transport. This EUR 0,19 is only a limit for the tax authorities. Your employer can give you as much more as he or she wants. If you do get more, the tax authorities consider everything you get above EUR 0,19 per kilometre as income on which you have to pay tax.

Every contract or CAO states a maximum travel distance allowance in kilometres. Often this is around 40 kilometres for a single journey. If you travel 60 kilometres to work, for example, you will pay 20 kilometres out of your own pocket. 

There is also a minimum distance you have to travel in order to receive an allowance. This differs per contract or CAO. Often it is about 5 kilometres. So if you travel 3 kilometres to work, for example, you will often not be reimbursed. 

Public transport

If you travel by public transport, you can also opt for reimbursement of the actual costs incurred. In that case, the entire amount is tax-free. For this you must keep your tickets or download your travel statements at ov-chipkaart.nl. In most cases your costs for bus, train, tram or metro are fully reimbursed by your employer. No tax is calculated and you will receive a net payment on top of your salary.

Other travel cost reimbursements

When you travel for your work, you will often receive an allowance for parking costs. You have to keep the parking tickets and declare them to your employer. 

Some employers even give you a free bicycle. In that case, you get a budget of, for example,
EUR 2000  to buy a bicycle. This is often laid down in a CAO.