Calculate travel expense reimbursement: formula and worked examples for employers
Do you want to calculate a travel expense reimbursement for employees? For trips by private transport, use a fixed formula based on the home‑to‑work distance, the number of working days and the tax‑free per‑kilometre rate. For public transport it works differently: you reimburse the actual public‑transport costs.
On this page you will learn how to calculate a fixed travel expense reimbursement, which formula to use, and how to handle part‑time employees, hybrid working and public‑transport reimbursements.
Mark Sloothaak, Mobiliteitsadviseur
NS Zakelijk
For a fixed (monthly) travel allowance for private transport (including walking), you may, under certain conditions, use the formula: one-way distance × 2 × 214 working days × €0.25. Divide the result by 12 to calculate the fixed monthly amount.
For a flexible travel allowance you calculate the reimbursement based on the actual number of travel days.
For public transport there is no per-kilometre allowance. You may reimburse the actual travel expenses tax-free.
You can also reimburse the trip to and from the station, for example by bicycle, on foot, or by car to a P+R location.
With the NS Business Card and NS Go you can easily manage travel expenses and keep control of travel behaviour and mobility costs.
What do you need to calculate a fixed travel expense reimbursement?
Before you calculate a fixed travel expense reimbursement, first determine whether you use a reimbursement based on the actual days traveled or a fixed monthly amount.
Reimbursement based on actual days traveled
You only reimburse the days on which an employee actually travels. This method works well with hybrid working but requires good registration of travel days. With the NS Go mobility platform you automatically register all employee journeys and can easily process reimbursements based on actual travel behaviour.
Fixed travel expense reimbursement
With a fixed travel allowance you agree a fixed monthly amount based on the home-to-work distance and the expected number of travel days. If an employee travels at least 128 days per year to the same fixed workplace, you may calculate the fixed monthly travel allowance on the basis of 214 working days per year. For part-time employees you adjust this pro rata.
What information do you need?
To calculate a fixed travel expense reimbursement you need three pieces of information:
The home–work distance The one‑way distance from the home address to the workplace, measured via the most common route.
The number of working days per year For a full‑time position you generally use 214 working days per year. If your employee works part‑time, adjust the number of working days pro rata. If that is the case, you may calculate the reimbursement based on 214 working days per year. For part-time employees, apply this pro rata.
The tax‑free rate For trips by private transport you may reimburse up to €0.25 per kilometre tax‑free.
Always use the one‑way distance. In the formula you later multiply this by two for the outward and return journey.
For a fixed travel allowance for travel by private (own) transport you use the following formula: One-way distance × 2 × number of working days × €0.25 = annual allowance This formula is used to calculate the annual travel allowance. By dividing the annual allowance by 12 you determine the fixed monthly amount. If an employee travels at least 128 days per year to the same fixed workplace, you may use 214 working days per year when calculating the number of working days. For part-time employees, adjust this number pro rata. If an employee travels less often to a fixed workplace, a reimbursement based on the actual number of travel days is usually more appropriate.
Every organisation is different. Our mobility advisers at NS Zakelijk are happy to help you find a travel allowance scheme that suits your organisation. That way you can be sure the arrangement fits your employees, mobility policy and the applicable tax rules.
Examples — travel expense reimbursement 2026
The examples below use rounded numbers of working days. As a result, the actual reimbursement may differ from the amounts shown.
Example for private transport, such as car or bicycle
An employee lives 20 kilometres from work and commutes five days a week.
Item | Value |
One-way distance | 20 kilometres |
Working days per year | 214 |
Rate | €0.25 / kilometre |
Annual reimbursement | 20 × 2 × 214 × €0.25 = €2,140 |
Monthly reimbursement | €2,140 ÷ 12 = €178.33 |
Travel expense reimbursement for part-time or hybrid working
If an employee works part-time or hybrid, adjust the number of working days pro rata.
Example: 3/5 × 214 = 128 working days
The formula stays the same; only the number of days changes.
Situation | Working days | Example (20 kilometres) |
Full-time (5 days) | 214 | €2,140 /year → €178.33 /month |
4 days per week | 171 | €1,712 /year → €142.67 /month |
3 days per week | 128 | €1,284 /year → €107.00 /month |
If an employee does not meet the 128-day rule, a flexible travel expense reimbursement can be a suitable alternative, where the amount varies based on actual days travelled.
Example for public-transport commuters
For employees who travel by public transport, the calculation works differently. You reimburse the actual public transport costs, for example single journeys or a train or public transport pass. You may reimburse that tax-free, even if the actual costs come to more than €0.25 per kilometre.
For example: as an employer you may provide or reimburse an NS Business Traject Vrij subscription of €220 per month tax-free, provided the subscription is used for business travel.
Travel to and from the station can also be reimbursed tax-free
Do employees travel by public transport? You can also reimburse the kilometres to and from the station separately. Think of cycling or walking kilometres, or the driving route to a park-and-ride (P+R) location. These to/from-station kilometres may be reimbursed tax-free at up to €0.25 per kilometre, separate from the public-transport costs.
With public transport you don’t have to calculate commuting reimbursement per kilometre. You reimburse the actual public‑transport costs and can process to‑ and from‑station kilometres separately.
With the NS-Business Card, public transport journeys are automatically consolidated onto a single clear monthly invoice.. That means you don’t have to handle individual expense claims or receipts, and you always have visibility of the travel costs incurred.
This simplifies administration and offers two benefits for payroll:
You can reimburse the actual public‑transport costs tax‑free, even if the costs exceed €0.25 per kilometre.
You always have a digital record available for the tax authorities.
Have you calculated the travel expense reimbursement? Then you record it in the payroll administration. Below are the key tax rules to consider. Tax-free reimbursement
You may reimburse up to €0.25 per kilometre tax-free for private transport, such as car, bicycle or walking. The same rule applies to kilometres to and from a station or stop (for example when using a shared bike).
For travel by public transport you can choose: either reimburse up to €0.25 per kilometre or reimburse the actual public transport costs. If you choose the actual costs, you may reimburse them entirely tax-free, even if they are higher than €0.25 per kilometre. Additional public transport costs, such as an OV-fiets (bike-sharing service), can also be reimbursed tax-free under certain conditions if they are related to commuting or a business trip.
Werkkostenregeling (WKR)
Do you reimburse more than the targeted exemption allows? Then the excess is taxable wages, unless you designate it as remuneration subject to final levy within the “free space” of the Work-Related Costs Scheme (werkkostenregeling). If you exceed the free space, you as the employer must pay an 80% final levy on the excess.
Would you like to know more about the Werkkostenregeling (WKR)? Check the current rules and conditions on the website of
With NS Go you automate the management of travel expense reimbursements. Trip data is recorded automatically and reimbursements are processed through your HR system. That way you keep control of costs and save time.
