When should the employer pay the travel allowance?

In what situations is transportation subsidy due?  

The travel allowance must be paid whenever the worker needs to travel beyond their usual workplace and the distance requires the use of transportation - whether it be their own car, a company vehicle, or public transport. In these cases, the employer must compensate for these expenses, clarifies DECO PROTeste, as read on the Notícias ao Minuto website. (Source: Notícias ao Minuto).

The consumer protection organization explains that, as a rule, these compensations do not form part of the worker's remuneration, since they are not paid regularly.

However, if the position requires frequent travel, the contract may specify a fixed amount for this purpose. In this situation, any amount that exceeds normal travel costs, such as public transportation tickets, may be considered part of the salary, according to DECO PROTeste.

But what if the job requires a temporary stay abroad? The rule is similar: if the contract stipulates this payment, the travel allowance can be considered part of the salary.

And will there be any support for daily commutes to the workplace? DECO claims that there is. There are specific subsidies to offset the costs of daily transportation to work. These subsidies are considered part of the salary and, therefore, are subject to Social security deductions and withholding tax at the source.

Find out more: Can the worker decide where to receive the meal subsidy?

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