Business travel

Until 31 Dec 2026

Transport premium paid to the employee: the exemption ceiling is temporarily increased

Publié le 24 octobre 2026 - Entreprendre Service Public / (Prime Minister)

To help employees cope with rising fuel prices, the Government had announced in September an increase in the ceiling of the "fuel premium". Two decrees issued on October 21, 2026 confirm the temporary increase in the exemption limit for transport allowances for employees. Public Service take stock.

Add to my calendar
Illustration
Image 1Crédits: Drazen - stock.adobe.com
Reminders on the transport premium

The employee can benefit from a transport premium on the part of his employer when he incurs expenses for his travel between his habitual residence and his place of work.

This premium covers all or part of the fuel costs (gasoline and diesel) or the costs of charging or powering electric, plug-in hybrid or hydrogen vehicles.

It is optional. The award procedures and criteria shall be laid down:

  • by a company or business-to-business agreement;
  • or by a branch agreement, in the absence of a company agreement;
  • or by a unilateral decision of the employer if there is no branch agreement (after consultation with Works council if there is one).

Decree 2026-974 of 20 October 2026 points out that the limits on the exemption of benefits relating to personal transport costs continue to be as follows:

  • €600 per year to cover the cost of fuel or power for electric vehicles;
  • €600 per year for the sustainable mobility package (FMD), up to a maximum of €300 for fuel costs;
  • €900 in the case of the combination of the long-term mobility package with the payment of transport subscriptions (or, if it is higher, the amount of the payment linked to the transport subscriptions);
  • €310 for the reimbursement by a local authority, an EPCI (public inter-municipal cooperation institution) or France Travail, of costs incurred by employees whose home is at least 30 km from the workplace or drivers by carpooling.

Reminder

The employer may, optionally, propose a sustainable mobility package (FMD) employees using « alternative » modes of transport (bicycles, e-bikes, 2-wheel motorized vehicles, carpooling, etc.) to get to their workplace.

A new single exemption limit of €1,000 until 31 December 2026

In the context of rising fuel prices, the decree temporarily increases these amounts: amounts paid between 1er October and December 31, 2026 by the employer are exempt up to a limit of €1,000.

What are the conditions for granting the fuel premium until 31 December 2026?

For sums paid up to 31 December 2026, the eligibility conditions are also relaxed.

These flexibilities are strictly limited to fuel costs. They do not concern the cost of powering electric vehicles or the sustainable mobility package.

Under the ordinary law, the premium for fuel costs cannot be combined with the compulsory assumption of public transport subscriptions by the employer. On the other hand, only employees forced to use their vehicle to go to work can qualify (habitual residence or place of work located in a municipality not served by a public public transport service or a private service set up by the employer; working hours not allowing the use of public transport).

These conditions are amended until December 31, 2026.

Additional topics

Une remarque ?