The statutory amount of the commuting reimbursement doubled

Government Decree 16/2023 (I.27.) published on 27 January doubled the amount of the commuting reimbursement, raising the previous maximum of HUF 15 per km to HUF 30. At the same time, the minimum reimbursement level has also doubled, from HUF 9 to HUF 18 per km. The new rules are applicable for the first time to reimbursements paid for commuting to work for the month of January 2023. The minimum reimbursement rule becomes compulsory from February 2023.

The employer is obliged to reimburse expenses reasonably incurred in the performance of the employment relationship, including travel to and from work. The reimbursement rules are laid down by Government Decree 39/2010 (26.II.) (hereinafter: the “Decree”).

Decree defines commuting as daily travel to the place of work outside the administrative boundaries of the employee's municipality of residence. In order to be eligible for reimbursement, the employee should declare their place of permanent residence and place of temporary residence.

An employer can pay travel expenses to an employee in one of the below two ways:

1. by reimbursing 86% of the cost of the season ticket or ticket for the employee's travel to work, or up to 100% tax-free (this should be provided for by the employer’s internal policy). The reimbursement obligation applies not only to full-price season tickets and tickets, but also to season tickets and tickets redeemed with a travel discount or reduced in price with a commercial discount.
2. by reimbursement per km of the return journey. The employer is obliged to reimburse at least 60% of the amount of HUF 30 HUF per km as defined in the Personal Income Tax Act as a travel allowance (which is HUF 18 per km), but it may be tax-free up to 100% (this should be provided for by the employer’s internal policy). The allowance above HUF 30 per km is the employee’s taxable income taxed as wages. 

The employer must reimburse the employee's travel expenses in their own car if the employee:

• has a child in day-care or attending a public education establishment under the age of ten;
• is unable to use public transport because of reduced mobility or a serious disability, even if their travel to work is ensured by a relative of theirs;
• there is no public transport between the place of permanent or temporary residence and the place of work;
• the employee's work schedule implies that they cannot use public transport or have to wait a long time (e.g. where a 20-minute journey by car can be made in 1.5 hours by public transport).

In the case where the employer arranges the return journey between the employee's place of permanent or temporary residence and the place of work by means of group transport, there is no obligation to reimburse the travel costs.

The increased reimbursement amounts will remain in force during the period of an emergency situation under Government Decree 424/2022 (X.28.).

31 Jan, 2023

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