You read that the travel allowance is increasing. Great news, especially if you drive to work every day. But does such a government measure also mean that your employer must immediately raise your allowance? No, it doesn't work that way automatically. And it is precisely that difference that is important to understand.
The maximum tax-free travel allowance has been €0,23 per kilometer since 2024. The Tax and Customs Administration states this amount also for 2025 and 2026. At the same time, the Cabinet announced on April 20, 2026, that the tax-free travel allowance will be increased to €0,25 per kilometer with retroactive effect in 2026. That announcement is intended as compensation for higher fuel costs and other commuting expenses.
That sounds as if employees automatically receive more. However, that is not the case. The government primarily determines the maximum amount an employer is *allowed* to reimburse tax-free. That is different from what an employer is *obliged* to pay.
Tax allowance is not a condition of employment
In most cases, the travel allowance is a condition of employment. This is stated, for example, in your employment contract, collective labour agreement, or personnel regulations. It may state that you receive a fixed amount per kilometer, that your public transport costs are fully reimbursed, or that a monthly maximum applies.
The tax limit only determines the amount your employer can pay out without payroll tax. If your employer pays more than the tax-free maximum, the excess may be taxable wages. If your employer pays less, this is not automatically prohibited. Therefore, the Tax and Customs Administration does not say: every employee is entitled to this amount. The Tax and Customs Administration says: An employer can reimburse up to this amount tax-free..
In practice, that distinction often causes confusion. An employee sees a news report about higher compensation and expects the amount on the payslip to reflect this immediately. However, legally, what has been agreed upon counts.
When are you entitled to an increase?
You are entitled to a higher reimbursement if this follows from your terms of employment. This may be the case, for example, if your collective labour agreement states that the employer applies the maximum tax-deductible mileage allowance. In that case, the reimbursement adjusts in line with the tax limit as soon as that limit changes and the provision in the collective labour agreement aligns with it.
Your employment contract or employee handbook may also state that you are entitled to “the fiscally maximum permitted mileage allowance”. In that case, the exact wording is important. Sometimes a specific amount is stated, for example €0,21 or €0,23 per kilometer. In that case, your allowance will not automatically increase accordingly, unless the regulation is adjusted.
Therefore, it is wise not only to look at the news, but especially at your own collective labor agreement, contract, and personnel regulations. These state what you can fall back on legally.
Why is the government increasing the amount then?
The increase in the tax-free allowance is intended to give employers more opportunity to accommodate employees. Commuting to work has become more expensive for many people. Think of fuel, maintenance, insurance, or the costs of other transport. By increasing the tax-free allowance, an employer can reimburse more without tax being levied on it immediately.
However, the government does not automatically impose a payment obligation on employers with this. It is a fiscal measure, not a direct change to all employment contracts in the Netherlands.
What if your employer doesn't raise?
If your employer does not increase the allowance, it does not immediately mean that they are doing something wrong. The first step is to check exactly what has been agreed. Does your collective labor agreement or contract state that you are entitled to the maximum tax-deductible allowance? If so, you can hold your employer accountable. If a fixed, lower amount is stated, an increase is usually a matter of consultation or collective labor agreement negotiation.
That does not make the subject any less important. Precisely because commuting is a significant expense for many employees, travel expense reimbursement belongs on the table during employment terms negotiations. Especially when attendance at the office is mandatory, or when hybrid working becomes less feasible, appropriate compensation is reasonable and open for discussion.
Also check your payslip
A travel allowance is often paid out net, because it falls within the tax exemption. As a result, an increase can be immediately noticeable in your account. However, this only happens if your employer actually adjusts the allowance. On your payslip, you can usually see the amount paid for travel expenses and whether this has been processed net. In a previous explanation of De Unie Regarding gross and net salary, it is also stated that travel expense allowances can be added to your net salary if you are entitled to them.
Do you notice that your compensation does not match your collective labor agreement or contract? Then it is advisable to inquire about this in writing with HR or your supervisor.
The role of De Unie
De Unie is committed to clear, fair, and up-to-date employment conditions. Reimbursement of travel expenses is part of this. Especially for employees who cannot simply work from home or who travel long distances daily, a few cents per kilometer can make a big difference.
At the collective bargaining table, can De Unie make agreements regarding the amount of the mileage allowance, full public transport reimbursement, home working allowance, and hybrid working. In doing so, we look not only at tax possibilities, but above all at what employees need in practice. Previously emphasized De Unie all that purchasing power and middle incomes are important focus points in employment conditions policy. Travel expenses play a role in this.
Ready to see how Snowflake works?
According to the Tax and Customs Administration, the maximum tax-free travel allowance currently amounts to €0,23 per kilometer for 2026. The Cabinet has announced its intention to retroactively increase this amount to €0,25 per kilometer for the entire year 2026. However, even if that increase is implemented, it does not automatically mean that every employee is entitled to €0,25 per kilometer.
The core remains: a tax increase is not an automatic right under employment law. Your entitlement depends on your collective labour agreement, employment contract, or personnel regulations. Are you unsure whether your employer is paying the correct compensation? Or do you want to know how to bring up this subject? Then please contact De UnieOur specialists would be happy to take a look with you.
