Business expenses and the construction industry: focus on the commuting bonus and transport expense allowances

Commuting or transport allowances are professional expenses specific to the construction industry. But what exactly are they?

This professional sector is subject to particular constraints. Construction workers have to travel a lot to get to job sites, sometimes over long distances. In other words, this is a profession that requires a great deal of mobility on the part of the employee.

As a result, collective bargaining agreements provide for appropriate compensation.

To help you get a clearer picture, we take a look at commuting bonuses and compensation for transport costs in the building and civil engineering sector. To what extent do they apply? How is the commuting allowance calculated? Are there other allowances available in the building and civil engineering sector?

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Short and long distances: definition

To fully grasp what we mean when we talk about actual business expenses in the building and civil engineering sector, we need to understand the difference between short and long journeys.

Some bonuses fall into one category, but not the other.

Short trip allowances

Short trips are those made by workers to construction sites, when they can return home after the day's work.

However, even in this case, the great mobility required of employees represents a constraint. For this reason, the French Labor Code provides for the payment of compensation to these professionals:

• the commuting allowance,
• transport expense allowance,
• meal allowances.

☝️ However, the journey between the head office and the worker's home is not eligible for compensation, as it is not considered as actual working time.

Long-distance travel allowances

When employees find themselves unable to return home after a day's work because the distance involved is too great, this is referred to as long-distance travel (Grand D, or Grand Dép).

Circular DSS/SDFSS/5 B no. 2005-376 of August 4, 2005 provides further details on long-distance travel time in the construction industry. It stipulates that the worker falls into this category when :

• the distance between his home or the company's head office and the worksite is greater than or equal to 50 km for a one-way trip;
• the public transport journey to the worksite is more than 1 hour 30 minutes one way.

In this case, the employee is entitled to full compensation for accommodation and meal expenses. We'll come back to this subject later in the article.

What is the commuting allowance?

Commuting allowance: definition

Here's what the national collective agreement for workers employed by construction companies has to say on the subject: "In return for the mobility of the workplace, inherent in employment on a building site, the purpose of the commuting allowance is to provide flat-rate compensation for theIn return for the mobility of the workplace inherent in working on a building site, the purpose of the commuting allowance is to compensate the worker on a flat-rate basis for the distance he has to cover to get to the site before the start of the working day and to get back after the end of the working day."

The commuting allowance is therefore defined as a flat-rate daily bonus. It corresponds to the daily time spent by employees in transport to and from work sites, and is intended to compensate for the constraints associated with the high degree of mobility inherent in their assignments.

☝️ Note: the commuting bonus is subject to social security contributions.

How do I qualify for the commuting bonus?

The commuting bonus applies to temporary work, as well as to fixed-term and open-ended contracts.

Workers benefit from this bonus, regardless of the mode of transport used (private car, company vehicle, etc.).

However, there are a number of situations in which it does not apply:

• when the company provides free accommodation for the employee in the immediate vicinity or on the worksite,
• when the employee's commuting time is directly remunerated (as it is counted as actual working time).

Finally, note that the commuting allowance does not apply to sedentary employees, i.e. those who work permanently at the organization's head office.

What's the difference with the transportation allowance?

Commuting expense allowance: definition

We could say that the transportation expense allowance has a more economic scope, since it refers to the reimbursement of expenses incurred by the worker when traveling to and from work on a site.

☝️ Insofar as it relates to employee expenses incurred on the way to and from work, it is not subject to social security contributions.

How can I benefit from the transportation allowance?

Employees using their own vehicles are entitled to a transportation allowance. It can be combined with the commuting allowance.

However, these allowances are not granted systematically. Employees are not entitled to them if the employer provides free transport, by :

• the provision of a company vehicle,
• a pick-up system,
• public transport reimbursement.

Differences between commuting allowance and transportation allowance :

How is the commuting allowance calculated?

The amount of the commuting bonus varies according to the situation, since it is calculated on the basis of the distance between the worker's home and the worksite, using concentric circular zones spaced 10 km apart:

• Zone 1 A: 0 to 5 km
• Zone 1 B: 5 to 10 km
• Zone 2: 10 to 20 km
• Zone 3: 20 to 30 km
• Zone 4: 30 to 40 km
• Zone 5: 40 to 50 km
• Zone 6: 50 to 60 km
• Zone 7: 60 to 70 km

💡Good to know: if an employee works at different locations on the same day, the worksite furthest from his or her home is taken into account when calculating the bonus.

In addition, the value of the commuting bonus per zone differs from one region to another. This amount is fixed by agreement and re-evaluated each year.

For this reason, we recommend that you regularly consult the table of commuting allowances published by the Fédération Nationale des Travaux Publics (FNTP).

How do I calculate my transportation allowance?

Similarly, transport allowances are based on a system of circular zones and regions.

Once again, you need to check the applicable rates on the FNTP website, according to the agreements specific to your company's location.

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Other allowances specific to the building and civil engineering sector

Meal basket allowance

Because of the travel constraints associated with the building and civil engineering sector, workers benefit from other types of compensation.

Such is the case with the lump-sum lunch allowance.

This becomes effective when it is proven that employees are unable to return home or to the company's head office for lunch, as they are obliged to remain on site.

On the other hand, compensation for meal expenses does not apply if the company :

• sets up a company restaurant on the site,
• opts for reimbursement on the basis of actual expenses, on presentation by the worker of proof, such as an expense report.

💡 Minimum allowances are set by collective bargaining agreement, and again vary from region to region. To find out more, please refer to the tables above.

Compensation for long-distance travel

As we have already mentioned, employees in the building and civil engineering sector are sometimes required to travel long distances, making it impossible for them to return home in the evening after the day's work.

In such cases, the company must cover the cost of meals and accommodation.

Compensation for long-distance travel is paid :

• either on the basis of actual expenses, supported by a receipt provided by the worker (expense account),
• or on the basis of a flat-rate allowance, without presentation of receipts. The scale applied is as follows:

Commuting allowances and other professional expenses related to the building and civil engineering sector are therefore subject to a number of variables, and vary according to collective bargaining agreements.

That's why it's important to be well informed beforehand, so that you can offer your workers the most appropriate scheme to support them in the performance of their duties.