Everything you need to know about mileage allowance 2024 and 2025
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The new year brings changes to mileage allowances. In 2024, dit increased, affecting employees and employers. In this blog, we explain all about the new rates, rules and how to make the most of them.
Mileage allowance 2024: these are the new rules
The kilometre allowance has been increased to €0.23 per kilometre by 2024. This is an important step. The rate has not been adjusted for years. Despite transport costs such as fuel and maintenance having risen substantially. This increase better reflects the reality of current travel costs. The amount of €0.23 per kilometre applies as the maximum untaxed kilometre allowance. This means that employees receive this amount in full net without being taxed.
However, employers may choose to reimburse a higher amount. For example, to provide extra relief to employees with high travel costs. In that case, the part above €0.23 per kilometre is considered wages. This higher amount is taxed according to the usual tax rules. This makes it more attractive for employers to stick to the maximum untaxed reimbursement.
Major changes in 2024:
Maximum untaxed mileage allowance: €0.23 per km.
Applies to business mileage as well as commuting.
Not compulsory unless stipulated in the collective agreement.
What is the km allowance in 2024?
Mileage allowance is a financial allowance for travel expenses. This can be for commuting, but also for business trips.
Examples:
| TYPE OF JOURNEY | UNTAXED REIMBURSEMENT PER KM |
|---|---|
| Type of trip: Commuting | Untaxed reimbursement per km: €0.23 |
| Type of trip: Business mileage | Untaxed reimbursement per km: €0.23 |
| Type of trip: Cycling trip | Untaxed reimbursement per km: €0.23 |
How does the mileage allowance for commuting work?
Commuting is the daily travel between your home and work. The travel allowance depends on:
- The distance in kilometres.
- The means of transport (car, bicycle, public transport).
From how many kilometres can you claim?
This varies from employer to employer and depends on the travel expenses scheme they use. Some employers reimburse travel costs from the very first kilometre you travel. This is often the case with companies that want to give their employees extra support.
Other employers set a minimum distance. Such as 10 kilometres one way before you are eligible for a mileage allowance. This is often done to reduce costs or compensate for longer trips only.
Want to know exactly what your employer reimburses? Check your employment contract, collective agreement or contact the HR department. With our calculator, you can easily calculate what you may claim based on your travel distance and days per week.
Statutory km allowance 2024: the details
Every year, the government sets the maximum untaxed mileage allowance. For 2024, this is €0.23 per kilometre. Employers are not obliged to give this travel allowance, but many companies choose to do so.
Over the years
Mileage allowances have been adjusted several times over the years. The rates are designed to support employees with rising transport costs, such as fuel prices and maintenance of vehicles. Here is an overview of developments:
| YEARS | UNTAXED REIMBURSEMENT PER KM | SIGNIFICANT CHANGE |
|---|---|---|
| Year: 2010 | Untaxed reimbursement per km: €0.19 | Major change: First fix rate |
| Year: 2023 | Untaxed reimbursement per km: €0.21 | Major change: First increase in 13 years |
| Year: 2024 | Untaxed reimbursement per km: €0.23 | Major change: adjustment due to inflation |
| Year: 2025 | Untaxed reimbursement per km: €0.23 | Major change: No change |
What stands out?
- The tariff remained at €0.19 for years, despite rising costs.
- In 2023, the first increase took place after more than a decade.
- The increase to €0.23 in 2024 is in response to inflation and rising transport costs.
Why is this increase important?
The higher allowance means that employees need to contribute less from their own pockets. This is especially relevant for people who travel long distances daily, such as commuters.
This information will help you understand how the fee has evolved and why the 2024 increase is an important step. Use our calculator to see what this increase means for you!
Tips for employers and employees
Employers:
- Use tools to process claims easily. SimpledCard offers customers the option to process and pay out claims.
- Draw up a clear travel expenses scheme. This will avoid ambiguity and hassle
Employees:
- Record your kilometres accurately. You can use the km allowance calculator on this page to accurately calculate the kilometres and associated costs.
- Check your collective agreement for additional agreements.
FAQ
What if my employer does not give a mileage allowance?
You can discuss this, but the employer is not obliged to provide reimbursement. Sometimes it helps to demonstrate what expenses you incur and why reimbursement is important. If this is not possible, in some cases you can deduct your transport costs in your tax return.
What if I travel by public transport?
For travelling by public transport, you can be reimbursed based on the cost of your tickets. Some employers reimburse a fixed amount per kilometre or part of your public transport pass.
What is the difference between travel allowance and mileage allowance?
- Mileage allowance: Reimbursement per kilometre driven, regardless of the means of transport.
- Travel allowance: Wider concept that can include public transport, taxis and air tickets.
How does the calculator work?
Enter your distance, and the tool will calculate your compensation in seconds! You can tick whether it is a round trip or commuting.
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