What is the Mileage Reimbursement Rate for Business Travel in Germany?

As an employer of record (EOR) provider, Horizons ensures that you have a clear understanding of mileage reimbursement policies and guidelines. This article will walk you through the mileage reimbursement options available to employees in Germany, as per the current Federal Travel Expenses Act (Bundesreisekostengesetz - BRKG).

Important: Business Travel Only

The mileage reimbursement rates outlined in the BRKG are only applicable to business travel. This means that employees can claim mileage reimbursements for travel related to work activities, such as meetings, site visits, or travel between different company locations. These rates do not apply to daily commuting from your home to your regular workplace.

Overview of Mileage Reimbursement

In Germany, employees can claim mileage expenses based on either actual costs or flat-rate mileage allowances. If an employee does not submit individual receipts, they can use standard flat-rate mileage allowances, which are linked to the reimbursement rates outlined in the BRKG.

Here are the standard flat-rate mileage allowances applicable:

Car (Pkw): €0.30 per kilometer
Motorcycle / Scooter (Motorrad/Motorroller): €0.20 per kilometer
Moped / Mofa: €0.20 per kilometer
Bicycle (Fahrrad): €5.00 per month

Who Can Use These Mileage Allowances?

The flat-rate mileage allowances apply only to vehicles owned or leased by the employee. The vehicle must be used for business travel outside of the employee's regular workplace. In addition, expenses related to carrying luggage are already included in the mileage allowances.

Special Rules for Bicycle Use

In a new development, employees who use their own bicycles for work-related travel are now eligible for a monthly reimbursement. According to the BRKG, employees who use their bicycles for at least two trips per month can receive a reimbursement of €5.00 per month. This is a flat rate for the use of a bicycle.

Employees also have the option to claim actual expenses for business trips made by bicycle. In such cases, the actual costs per kilometer may be reimbursed, based on the individually calculated kilometer rate, similar to the reimbursement process for cars. It is important to note that employees are responsible for providing proof of the distance traveled and the actual expenses incurred.

Reimbursement for Rental Bicycles

If employees use rental bicycles for work-related travel, they can claim reimbursement for the actual rental costs, provided that they can present proof of payment.

Important Information on Reimbursement for Passengers

The BRKG does not permit mileage reimbursements for passengers, even though there were previous provisions for such reimbursements. Therefore, flat-rate mileage allowances apply only to the vehicle being used by the employee, not for any additional passengers.

Key Points for Employees to Remember

The mileage reimbursements are only applicable for vehicles that the employee owns or leases for business use.
Employees are responsible for providing proof of their travel distances and associated costs, especially if they are claiming reimbursement for actual expenses rather than flat-rate allowances.
Bicycle users are eligible for a €5 per month reimbursement, provided they make at least two business trips per month by bicycle.
Reimbursement for rental bicycles is based on the actual costs incurred, with proof required.
There are no allowances for passengers under the BRKG.

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Germany