Sustainable mobility package: 500 or 600 euros? Analysis of amounts and conditions
The ecological transition is at the heart of many debates in France. To contribute to this, the government has set up the sustainable mobility package. This measure is designed to encourage the use of more environmentally-friendly modes of transport, such as car-sharing or electrically-assisted bicycles (EABs). However, there are different amounts and ceilings for this financial aid. So, how much is this package worth, between 500 and 600 euros?
Sustainable mobility package: objectives and beneficiaries
The sustainable mobility package was introduced by the French Mobility Orientation Act (LOM) in December 2019. Its aim is to encourage employers, in both the public and private sectors, to contribute to the financing of home-to-work journeys made by their employees using environmentally-friendly modes of transport.
Transport modes concerned
- Bicycle or VAE (electrically assisted bicycle)
- Carpooling as a driver or passenger
- Shared mobility (scooters, electric cars, car-sharing)
Potential beneficiaries
The sustainable mobility package applies to employees :
- private sector (excluding self-employed)
- in the public sector
- whose employer has set up a program to support sustainable mobility.
Sustainable mobility package amounts and ceilings: 500 or 600 euros?
The amount of the sustainable mobility package varies according to several criteria, including the employer's choice and the employee's geographical location. Employers can choose between two amounts:
Free amount up to €500
Employers can offer a free amount of up to €500 with no social security or tax charges for their employees, whether taxable or not. This amount can be paid monthly, quarterly or annually.
Increased amount up to 600 € in certain zones
In certain specific areas known as heavily polluted areas" employers are authorized to allocate a higher sustainable mobility lump sum of up to €600. However, this amount is also exempt from social security contributions and taxes.
Conditions for entitlement and accumulation of the sustainable mobility package
In order to benefit from sustainable mobility packageseveral conditions must be met:
- The employee must use an eligible mode of transport (bicycle, VAE, carpooling, shared mobility) to commute to and from work.
- The employer must have been informed and agreed to set up the system within the company or administration.
Can be combined with other grants
The sustainable mobility package can be combined with :
- Bicycle mileage allowances, if the total amount does not exceed €500 (or €600 in highly polluted areas).
- Subscription to a public transport service, up to a maximum of €400 paid by the employer.
Please note that fuel, parking and toll charges are not compatible with the sustainable mobility package.
How do you set up a sustainable mobility package for your company?
To establish the sustainable mobility package within your company, follow these steps :
- Inform and consult employee representatives (social and economic committee, works council, etc.).
- Determine the amount of the package and the modes of transport covered.
- Set up a company agreement or an amendment to the employment contract for the employees concerned.
- Communicate the scheme to employees and inform them of their rights and obligations.
What are the benefits for companies and employees?
The sustainable mobility package benefits both employers and employees:
- For the company, it's a way of demonstrating its commitment to energy and environmental transition, while enhancing its appeal to current and future employees.
- For employees, it's a significant financial incentive to adopt sustainable mobility solutions, helping to reduce their ecological impact.
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