Sustainable mobility package, how does it work?

April 13, 2023

Forfait mobilité durable, comment ça marche ? - Neoca

Formerly known as the "kilometre allowance", the sustainable mobility package (FMD) was introduced by the French government to encourage employees in the public and private sectors to adopt alternative modes of transport to private cars, such as cycling, electric scooters, public transport, etc. Let's look at the conditions for benefiting from the FMD and the steps to take to take advantage of it.

What is the sustainable mobility package?

The sustainable mobility package (FMD) is a scheme that encourages employees to adopt eco-friendly modes of transport for their commute to work. Introduced in 2019 by the French government, the FMD allows employers to reimburse travel expenses for employees who use alternative modes of transport, such as:

Personal bike (including electric bike)
Car-sharing as a passenger and driver
Shared mobility services (sharing of electric or hybrid vehicles, rental and self-service provision of scooters or bikes)
Public transport (excluding season tickets)

In return, the employer benefits from a reduction in employer and employee social security contributions related to car travel.

The amount of the FMD can be up to €800 per year per employee in the private sector. The package is exempt from income tax and social security contributions up to a limit of €700 per year per employee (including a maximum of €400 for fuel costs) and can be combined with other aid (up to €800 for the total). Beyond these limits, the additional sum is subject to contributions and taxes.

For the public sector, and this since January 1, 2022, the annual amount of the FMD is set at:

€100 when the number of trips is between 30 and 59 days
€200 when the number of trips is between 60 and 99 days
€300 when the number of trips is at least 100 days

Who is concerned by the sustainable mobility package?

The sustainable mobility package is for all employees, whether they work in the public or private sector. It is also open to self-employed workers and public sector employees. However, it is important to note that the FMD is optional and employers are not obliged to offer it to their employees. It is therefore up to each employer to decide whether or not to implement this scheme in their company.

Another important point is that there is no minimum distance condition to benefit from the FMD! Employees can use alternative modes of transport to get to their workplace, regardless of the distance covered. For part-time employees, there are 2 different reimbursement schemes:

If the duration is more than 50% of the legal working time, the sustainable mobility package applies as for a full-time employee.
If the duration is less than 50% of the legal working time, the employer's reimbursement is proportional to this working time.

Steps to follow to benefit from the sustainable mobility package

To benefit from the sustainable mobility package, employees must apply to their employer. The latter must then set up a procedure for reimbursing travel expenses, taking into account the alternative modes of transport used by its employees. It can either opt for a lump-sum reimbursement or reimburse actual costs.

In addition, the amount of travel expense reimbursement must be stated on the payslip and the employer must notify employees at least 1 month in advance of any change in the characteristics of the package. On the employee's side, they must provide a sworn statement or proof of use of a mode of transport covered by the sustainable mobility package.

Combine the sustainable mobility package with other aid

The sustainable mobility package can be combined with other aid for home-to-work travel. For example, if you opt for carpooling, you can benefit from both the FMD and the carpooling mobility aid offered by the Agency for Services and Payment (ASP).

Similarly, if you use an electrically assisted bicycle for your home-to-work travel, you can combine the FMD with government aid for the purchase of an electrically assisted bicycle.

Finally, remember that the FMD can also be combined with public transport reimbursements made by the employer. Thus, by opting for a public transport season ticket for your home-to-work travel, you can benefit from the reimbursement of your season ticket by your employer and the FMD at the same time. Of course, the combination is possible within the overall limit of €800 per year per employee. So, don't hesitate to ask your employer about the different aids you can benefit from for your home-to-work travel!

Although it is still little known to the general public, the sustainable mobility package is therefore an interesting incentive for employees wishing to travel in a more ecological way! As we have seen, this package allows employers to reimburse travel expenses related to the use of alternative modes of transport, while benefiting from a reduction in employer and employee social security contributions. The FMD can also be combined with other aid such as the tax credit for energy transition or the electric bicycle bonus. So, don't hesitate to inquire, an FAQ is also available on the government website to answer your questions. A good action for the planet and your wallet!