Who bears the costs of fuel/transportation to work in Germany?

Legal basis: The employee bears the costs of commuting to and from work (fuel, tickets, etc.), unless otherwise stated in the employment contract or a special agreement.

Details: General rule: Daily commuting costs (including fuel) are not the employer’s responsibility but part of the employee’s personal expenses.

This applies to all means of transport: car, train, bus, bicycle, etc.

Exceptions: Some companies provide a commuting allowance (Fahrtkostenzuschuss) or partial/full reimbursement if stipulated in the contract, internal regulations, or an individual agreement.

Sometimes the company pays for public transport (Jobticket) or contributes to car costs for field services or business trips.

Tax deduction: Commuting expenses can be deducted from annual income tax (Pendlerpauschale/Entfernungspauschale): Currently (2024): €0.30 per kilometer (one-way distance between home and workplace, per working day).

This is recorded in the annual tax declaration, reducing the tax burden.

Business trips: If the company requires temporary work at another location, it covers all travel and accommodation costs according to travel expense regulations.

Summary: Normally, the employee bears daily fuel or commuting costs. Part of this can be compensated through tax deductions (Pendlerpauschale). If the contract or company explicitly provides partial/full reimbursement, the employer pays. For business trips, the company covers all costs.

Practical advice: Ask your company about commuting allowances and don’t forget to include all expenses annually in your tax declaration.