High fuel prices: how employers influence mobility policy and travel behavior

Persistently high fuel prices are affecting not only employees, but also forcing employers to make important choices. Employees increasingly find that the current mileage allowance no longer sufficiently covers actual travel costs. This leaves employers with a key question: should we offer greater compensation, or encourage different travel behavior? A combination of both is also possible.

A direct policy response is to increase the mileage allowance within a travel expense scheme. Employers are free to determine which scheme they offer their employees and what level of reimbursement they provide to support them.

The government has announced its intention to raise the tax-free travel allowance from €0.23 to €0.25 per kilometer. This creates additional room to financially support employees without the employer having to pay extra payroll taxes. Employers can decide for themselves whether or not to adjust their travel allowance accordingly.

At the same time, a higher allowance leads to structurally higher mobility costs for the employer, especially in organizations with a high level of car usage. Employers are therefore looking for alternatives to keep costs manageable while maintaining attractive employment conditions.

Research by AWVN shows that 87% of employers do not implement a blanket increase to compensate for high fuel prices, but instead opt for targeted compensation. This compensation is mainly aimed at roles where traveling by car is essential (positions involving a high number of business kilometers).

Employers also indicate they are exploring alternatives, such as differentiating allowances based on mode of transport, introducing mobility budgets, or encouraging hybrid working. This shifts the focus from simply “reimbursing more” to targeted and controlled compensation (Source: AWVN, 2026). For example, this could include a higher bicycle allowance, which can be structured in a tax-efficient way through the discretionary margin within the work-related expenses scheme.

Alongside policy adjustments, there is growing attention for smarter use of existing mobility schemes. In many organizations, public transport is already fully reimbursed and bicycle allowances are equal to or even higher than those for car use. However, these options often remain underutilized.

Employers can therefore focus on behavioral change without directly increasing reimbursements. By actively communicating and encouraging alternatives, and by removing barriers—such as providing a mobility card or offering a lease bicycle scheme—the switch to more sustainable travel becomes more attractive. Encouraging carpooling via an app can also contribute to more efficient travel behavior.

For employees, alternative travel methods can lead to lower commuting costs, while employers contribute to sustainability through healthier employees and reduced CO₂ emissions: a win-win situation.

The current pressure of high fuel prices is accelerating the development in which mobility becomes a strategic steering instrument. Now more than ever, it is important for employers to remain agile and maintain control over costs. Organizations that combine targeted compensation with behavioral steering are building a future-proof mobility policy: flexible, cost-efficient, and aligned with sustainability goals. Digital mobility platforms support this process.

With the platform from Mobility Concept, organisations can centrally and flexibly manage mobility. Among other things, it makes it possible to:

• easily (temporarily) adjust allowances
• differentiate between employee groups or job roles
• facilitate public transport and mobility cards
• offer higher bicycle allowances or lease bicycle schemes
• encourage and support carpooling via the app
• gain real-time insights into mobility usage and costs, enabling targeted adjustments

Curious how your organisation can use a mobility platform to gain control over rising travel costs while also steering behavior and allowances more intelligently? Feel free to contact us.