Most major Dutch companies skip raising tax-free mileage reimbursement for employees

Most major Dutch companies are not increasing the tax-free reimbursement for employee travel to the new government rate of 25 euro cents per kilometer, according to an ANP survey of about 20 large and well-known firms. Only a few said they will follow the measure.

The cabinet raised the tax-free kilometer allowance from 23 to 25 euro cents last month as part of measures to help offset higher energy prices linked to the war in the Middle East. The increase applies retroactively from January 1 of this year.

ABN AMRO, Rabobank, ING, Nationale-Nederlanden, NS, and NXP have stated they will not raise the reimbursement at this time. Several pointed out that many of their staff already commute by public transport, electric car, or bicycle, or work from home.

A spokesperson for Nationale-Nederlanden said the company’s offices are located near public transport hubs. “Employees who cannot travel by public transport and therefore use their vehicle receive a higher reimbursement if they travel sustainably or actively.”

Chipmaker NXP raised its reimbursement by 20 percent last month, a spokesperson said. “There are no plans at this time to bring it to 25 cents.”

Jumbo, KLM, VodafoneZiggo, accounting firms PwC and KPMG, parcel carrier DPD, and fast-charging company Fastned said they are still reviewing a possible increase or are awaiting further decisions from The Hague.

A DPG spokesperson said, “Recently, we have already introduced an additional scheme, whereby employees can fiscally advantageously exchange their unused travel kilometers. That is one of the ways in which we respond to the changing costs for commuting.”

Public transport companies Arriva and GVB and auction house Royal FloraHolland could not comment because of ongoing collective bargaining negotiations. Schiphol has raised its mileage reimbursement to 25 euro cents per kilometer from May 1.

Electric bus maker Ebusco is implementing the increase retroactively from January. Part of the ANWB staff will also receive it, but only for business travel and once decision-making in The Hague is finalized.