Finnish employer-subsidized commuter ticket
Topic of the practice
Energy and sustainable transport;
Good Practice Information
Employer-subsidized commuter ticket is a tax-exempt fringe benefit up to EUR300. If the share of the ticket paid by the employer exceeds EUR600 but is less than EUR 3,400, the taxable value of the benefit is EUR300. Also personal value tickets come under the benefit scheme. This makes it possible for e.g. those who cycle to work part of the year to take advantage of the benefit.
The aim is to encourage modal shift from private car to public transport, Finnish Taxation Office and Helsinki Regional Transport Authority (HSL) are involved. Employer-subsidized commuter tickets are also a tool for staff recruitment and retention. For employees the employer-subsidized commuter ticket is an employment benefit. The ticket is intended mainly for journeys between home and workplace.
Evidence of success
Original estimations by the Ministry of Transportation (2004): loss of taxation EUR6,0 Mio; increase in ticket revenue EUR3,0 Mio; social and environmental benefits EUR23,0 Mio.
In 2011 there were 60000 employer-subsidized commuter ticket users, majority of which already transit users as expected. Nationwide there were 71000 users, which was 20,8% more than previous year.
Contact details to obtain further information on the practice
Helsinki Region Transport
www.hsl.fi/EN/ticketsandfares/employersubsidizedcommuterticket/Pages/default.aspx www.tut.fi/verne/wp-content/uploads/tyosuhdelippuraportti.pdf www.vero.fi/en-US/Precise_information/Forms/Employer_Payroll_Report_and_other_annual_infor
Annex completed on: 05-22-2013