Transportation Expenses

It is common practice at most work places to reimburse the employee's travel expenses to and from the place of work. These expenses are added to the gross pay as a separate entity on the payslip. In fact employees end up paying taxes on the travel expenses and therefore the reimbursement is not in full. The Israeli labor laws define certain criteria for the payment of travel expenses reimbursement:

1. There be at least 2 bus stops from the employee's residence to the place of work.
2. If there are several ways to get to work using public transportation, the employer may choose the cheaper of them. For example: if there is a monthly bus card (chofshi chodshi) and a fare per bus ride and a bus card, the employer can elect to pay the monthly card.
3. Employees who are not employed on a full-time basis can receive a daily allowance of travel reimbursement.
4. The maximum required daily reimbursement is 20.14 shekels (updated July 1, 2004)
   
5. Travel reimbursement need only be paid for actual work days (not including holidays, vacation, sick days, reserve duty, etc). i.e. If an employee is absent from work for any reason he
   
6. If the employer puts to the employees' use a company car, rental car, car from leasing or other means of transport, he need not pay travel reimbursement to those employees. However, if transportation is provided by the employer in one direction only, the employee is entitled to half the travel expense reimbursement.
   

Moshe Egel-Tal, CSPP is a payroll professional with over 20 years experience. His profile can be seen at: www.jobshuk.com/motal7
and he can be contacted by Email: myegtal@gmail.com