Business Travel Perks: Increased Per Diems and More to Come in January

Starting in January, employees traveling for business are in for a treat! Their employers will have to reimburse them higher amounts for meals and using personal vehicles for work purposes. However, reimbursements for fuel expenses are set to decrease. The Ministry of Labor and Social Affairs proposed these changes.

The rise in the prices of meals and non-alcoholic beverages in public catering has increased meal rates by 10 to 24 crowns. The daily meal allowance for private sector employees on business trips lasting five to twelve hours is 129 crowns, but this will soon be 139 crowns. For trips lasting up to eighteen hours, the amount will increase from 196 to 211 crowns; for those longer, it will rise from 307 to 331 crowns.

For public sector employees, meal allowances are set with a range. For trips lasting a maximum of twelve hours, the range is between 129 and 153 crowns, which will soon be between 139 and 165. For trips lasting up to eighteen hours, the range will increase from 196 to 236 crowns to 211 to 254 crowns. For those lasting more than eighteen hours, the daily meal allowance will increase from 307 to 367 crowns to 331 to 396 crowns.

Employers will also have to pay more to use private cars and motorcycles for business purposes. The basis compensation rate per kilometer of travel will thus rise for cars from 5.20 to 5.50 crowns and motorcycles and tricycles from 1.40 to 1.50 crowns.

Conversely, the average fuel price that a company reimburses will decrease for 95-octane gasoline from 41.20 crowns per liter to 39.60 crowns. For 98-octane, it will drop from 45.20 crowns to 44.20 crowns. For electric vehicles, the compensation will decrease from 8.20 crowns to 7.70 crowns per kilowatt-hour. Nevertheless, employees will receive more for a liter of diesel fuel, precisely 40 crowns instead of 34.40 crowns.

The Ministry has now sent a draft regulation for comments. However, approval is more or less specific because it is based on rules set by law. This is good news for all employees as we kick off the new year.