Impact train fare increase on commuting in 2024
On 1 February 2024 the subscription fees for the train (NMBS/SNCB) have been increased. In this newsletter, we would like to inform you of the impact of these increases for you as an employer.
First of all, we repeat in a nutshell the general principles that determine whether you, as an employer, are obliged to contribute to the commuting costs of your employees:
1) For employees who come to work by public transport, the employer is obliged to pay a contribution as from the 1st kilometer. All employers are subject to a minimum contribution, laid down at the level of the National Labour Council (CNT/NAR). Within the National Labour Council, a collective bargaining agreement was concluded that determines the employer's contribution based on lump sums. These amounts have remained unchanged since 1 July 2019.
2) For employees who come to work by bicycle, the employer is obliged to pay a bicycle allowance. Since 1 May 2023, the employees belonging to a sector that has not concluded a collective bargaining agreement on bicycle allowances or employers that have not concluded a company collective bargaining agreement must grant the bicycle allowance imposed by the National Labour Council, the indexed basic amount of which amounts to 0.28 EUR per kilometre. More information on this subject can be found in this newsletter.
This bicycle allowance is exempt from social security contributions and taxes up to a certain amount. Since 1 January 2024, the maximum exempt amount amounts to 0.35 EUR per kilometre. Moreover, an annual threshold of 2,500 EUR has been introduced since that date. This threshold is expected to be increased to 3,500 EUR soon. The part of the annual bicycle allowance exceeding the threshold will be subject to social security contributions and withholding tax.
3) For employees who come to work by their own means of transport (E.g. car), it should be checked whether a contribution has been determined at sector level.
As you can read below, increases of the fares of the public transport companies do not affect every employer.
Train
As from 1 February 2024, the NMBS/SNCB increased its fares by 5.9%. Whether you, as an employer, have to contribute to this increase in fares, depends on the joint industrial committee (sector) to which your company belongs, and the collective bargaining agreements that were concluded in this joint industrial committee:
- Your sector does not stipulate anything about the contribution to commuting costs or refers to the general minimum regulation provided for by the National Labour Council --> your contribution does not increase, as the lump sums remained unchanged.
- Your sector provides for the employer's contribution to be equal to a percentage of the actual rail fares --> your contribution will increase.
- You make use of a third-party payer agreement whereby you as an employer pay a contribution of 80% of the actual price of the train season ticket to the train company and the state pays the remaining 20% --> your contribution will increase.
Metro, tram, bus, waterbus
Does your employee travel to work by metro, tram, bus or waterbus? First of all, check whether your sector has stipulated anything for this reimbursement.
If your sector does not stipulate anything, the price increases will have an impact on your contribution to the commuting costs, depending on which of the following regulations applies:
1) Is the cost of the ticket linked to the distance travelled? Then the employer’s contribution is calculated on the basis of the fixed lump sums of the railway transport, but the contribution is limited to 75% of the actual transport cost.
2) Is the cost of the ticket not linked to the distance? The contribution of the employer is 71,80% of the actual transport cost, not exceeding the lump sum provided for the train for a distance of 7 kilometers.
Private transport
Does your employee come to work using his own car or by foot? A mandatory contribution to private transport is not provided for by the National Labour Council. Therefore, the employer's contribution for private transport is often provided for at sectoral or company level. If your sector refers to the lump sums of the railway transport, your employer's contribution will not increase. However, some sectors refer to a percentage of the actual train fares. In this case, the employer's contribution to the commuting costs will increase.
Does your employee come to work by bicycle? Then price increases of the NMBS/SNCB will have no impact on your contribution to the commuting costs.
Combined public transport
Your employee combines the train with one or more other means of public transport? First of all, check the regulations in your sector.
If your sector does not stipulate anything and if only one ticket has been provided for the whole distance, the employer's contribution is calculated on the basis of the established lump sums of the railway transport. If several tickets are provided, the employer’s contribution must be calculated separately for each means of public transport. These employer contributions must be added together.
Action point
If your contribution for the commuting costs of your employees increases, we will automatically calculate the correct contribution for you. If there are any changes in the means of transport your employee uses for his/her commuting travel, do not forget to inform your Payroll Business Partner in due time.
