Expensive petrol hits workers in the wallet: ‘Higher mileage allowances will feature in more collective agreements’
Dutch labor unions are aggressively pushing for a maximum tax-free travel reimbursement of 25 cents per kilometer to help employees offset high fuel costs. While employers have been hesitant to commit to these increases, the expectation is that such allowances will become a standard feature in future collective labor agreements following government support.
Rising fuel prices have turned travel reimbursements into a major focal point during collective labor agreement (cao) negotiations in the Netherlands. The CNV trade union is pushing for a maximum tax-free reimbursement of 25 cents per kilometer, arguing that most employees are currently losing significant personal income due to high commuting costs. While some industries have already secured this increase, others face resistance from employers who are wary of the financial implications and hesitant to alter existing employment packages without legal certainty.
Although the government has proposed raising the tax-free limit to 25 cents as part of the 2027 tax plan, employers have remained cautious about implementation. The employers' association AWVN initially advised companies to be careful, fearing tax complications if government policies shifted. However, with growing parliamentary support for the measure, the AWVN now expects that higher travel allowances will be increasingly integrated into future collective agreements. Despite this, unions emphasize that negotiations will remain difficult as workers simultaneously demand broader wage increases to combat inflation.
Based on reporting by ad. Translated and condensed by LocalHeadlines.
