All about the sustainable mobility package

What is the Sustainable Mobility Package (FMD in French)?

A key measure of the LOM law (Mobility Orientation Law)The sustainable mobility package is an incentive for employers to cover all or part of their employees' home-to-work travel costs . Although the FMD is optional, it is subject to several conditions, the most important of which is that the rides trips must be made using a soft mobility solution that is more environmentally friendly and less costly than the individual vehicle.

The Sustainable Mobility Package replaces two schemes that were initially introduced: the kilometre-based bicycle allowance (IKV) and carpooling allowances.

Who can benefit from the sustainable mobility package?

The Sustainable Mobility Package is available to all employees in the private sector, but also to all civil servants. However, the terms of application and the amounts vary according to the sector. Thus, while the majority of employees can benefit from the package, it is not accessible to people who are benefitting of a :

• Company housing at their place of work;
• A company car;
• A free shuttle to and from work;
• Free transportation by the employer;
• A special allowance resulting from decree n° 83-588.

Modes of transport eligible for the sustainable mobility package

Again, the scheme varies by sector. In the private sector, the Sustainable Mobility Package is eligible to anyone using the following means of transportation:

• The bicycle with or without electric assistance;
• Free-floating modes of travel, such as scooter or electric scooter rentals;
• Carpooling;
• Public transportation (other than those that qualify for a 50% pass pick-up );
• Low-emission car-sharing vehicles (electric, hybrid or hydrogen vehicles).

In the private sector, only carpooling and electric or mechanical bicycles are eligible for the Sustainable Mobility Package, provided they are used at least 100 days a year for home-to-work rides .

Sustainable mobility package: amount, financing and payment

The LOM law does not impose any floor for setting the Sustainable Mobility Package. Thus, the amount of the Sustainable Mobility Package is at the discretion of the employer. However, it is subject to a ceiling, which varies according to the sector:

• 500 € per year and per employee for the private sector;
• 200 € per year and per agent for the public sector.

The private sector employer is free to grant a SMP in excess of €500, but in this case, the portion in excess of the limit will not be subject to theincome tax exemption.

The Sustainable Mobility Package is entirely paid for by the employer in the private sector, as is already the case for the transport bonus. The payment can be made monthly and mentioned on the pay slip, but it can also be allocated in the form of a mobility voucher (like the luncheon voucher). In this case, the package takes the form of a dematerialised payment voucher, with a prepaid amount that will allow the employee to cover his or her mobility expenses.

Public sector employees are paid the DMF in the year following application. If the individual has more than one employer, the amount is allocated in proportion to the hours worked for each employer.

The different cases of pick-up of the sustainable mobility package

Theallocation of the DMF depends on many criteria. Once the mode requirements have been met, the package must be calculated on a case-by-case basis.

The DMF for a part-time employee

If the employee works more than or equal to 50% of the legal work week, then he or she receives the full rate of the DCF. If the employee works less than 50%, the calculation is based on the number of hours worked per half day.

The calculation is also proportional for civil servants who were recruited during the year or struck off the payroll during the year.

The DMF for professionals with multiple locations

An employee or agent with a single employer, but multiple locations, is eligible for the DMF for any required travel between his or her home and work locations, as well as for rides between work locations.

The rules for accumulating the sustainable mobility package

Before the introduction of the Sustainable Mobility Package, other schemes were in place to cover part of the travel costs of professionals. Although the IKV and the fixed carpooling allowances have been abolished, others can still be combined with the FMD. However, this combination is not possible in the civil service and only applies to the private sector.

Combining the DMF and public transport participation

It is possible to combine the FMD with the mandatory participation in public transport and shared bike passes. However, the tax benefit will be based on the combination of the two grants, with a ceiling of €500 per year.

Combining DMF and fuel costs

Here again, the combination of FMD and pick-up of fuel costs is possible. The tax exemption limit is also capped at €500 per year for both schemes.

Combining the DMF and mileage allowances

Combining the DMF and mileage allowance is possible under certain conditions. For example, in the case of carpooling, only the driver is eligible for both the DMF and the mileage allowance. In fact, the professional must use his or her personal vehicle to claim the allowances.

The sustainable mobility package is designed to encourage sustainable modes of travel, as is the case with Demand-Responsive Transport (DRT).