Starting January, employees embarking on business travels are in for an enhanced reimbursement experience, thanks to proposed changes by the Ministry of Labor and Social Affairs. While the revisions promise higher allowances for meals and personal vehicle usage, fuel reimbursements are set to see a decrease.

One of the notable adjustments is the increase in meal rates, particularly for private sector employees on trips lasting five to twelve hours. The daily meal allowance, currently at 129 crowns, is set to rise to 139 crowns. For longer journeys, the increments are even more substantial, with amounts increasing from 196 to 211 crowns for trips lasting up to eighteen hours and from 307 to 331 crowns for extended trips.

Public sector employees will also benefit from revised meal allowances, with increases across various trip durations. The adjustment in the range for trips up to twelve hours will see allowances rise from 129-153 crowns to 139-165 crowns. Similarly, longer trips will witness a boost from 196-236 crowns to 211-254 crowns, and for trips exceeding eighteen hours, the allowance will increase from 307-367 crowns to 331-396 crowns.

In addition to meal allowances, employers will now be required to pay higher compensation for the use of private cars and motorcycles for business purposes. The base compensation rate per kilometer will increase from 5.20 to 5.50 crowns for cars and from 1.40 to 1.50 crowns for motorcycles and tricycles.

However, not all changes favor the employees, as the average fuel prices eligible for reimbursement are set to decrease. For gasoline, the rate drops from 41.20 to 39.60 crowns per liter for 95-octane and from 45.20 to 44.20 crowns for 98-octane. Electric vehicles will also see a reduction in compensation from 8.20 to 7.70 crowns per kilowatt-hour. In contrast, the reimbursement for a liter of diesel fuel is slated to increase to 40 crowns from the current 34.40 crowns.

While the Ministry has opened the proposed regulation for comments, the approval seems likely, given its alignment with existing legal frameworks. As we usher in the new year, these changes bring positive news for employees, ensuring more equitable reimbursements for their business-related expenses.

Article by Prague Forum