Almost everyone gets too little mileage allowance

If you drive to work by car, your employer can grant you a tax-free mileage allowance of 21 cents. But that’s not nearly enough, according to the Association of Professional Drivers.

Until recently, the untaxed mileage allowance was 19 cents. This has been the case since 2006. The amount was originally supposed to increase in 2024 and 2025, but the government has brought this forward by a year because of high fuel costs.

The mileage allowance was increased at an early stage

The amount per kilometer rose from 19 to 21 cents on January 1st. Another cent will be added next year. But in order to cover the costs, the fee must be 31 cents according to the Association of Professional Drivers.

More than 80 percent receive too little

The organization conducted a survey on the website and asked visitors how much mileage compensation they received. Almost half receive 21 cents and 23 percent even less. Only a small group (16 percent) is lucky and gets 31 cents or more.

According to the VZR, 84 percent of those surveyed therefore receive too little mileage allowance because there are also employees who do not receive anything from their boss for using their private car.

Payroll tax on compensation over 21 cents

By the way: An employer who pays his employees more than 21 cents per kilometer must withhold wage tax on the part mentioned above.

Fuel prices still high

Fuel prices have skyrocketed over the past year, forcing many workers to focus on their travel expenses. In June 2022, the nationwide recommended retail price for petrol even rose to over 2.50 euros.

It has now fallen significantly, but is still high compared to the time before the war in Ukraine. The recommended retail price for petrol is now EUR 1.99. At 1.80 euros, diesel is well below that.

LPG is of course still the cheapest fuel, but the days when you could fill up your ring tank for 60 cents per liter are over. At the time this article was written, the recommended retail price was 1.11 euros.