Commuter Allowance
What is a Commuter Allowance?
A commuter allowance is a benefit designed to offset employees’ daily travel costs between home and work, covering expenses such as public transport fares, fuel, parking, or ride-sharing services. This allowance helps ease the financial burden of commuting while also encouraging sustainable transport options, such as cycling schemes or public transit incentives. Some employers may tailor this benefit to align with green commuting initiatives, promoting lower-carbon travel alternatives.
Benefits to Employer
A commuter allowance can reduce absenteeism by alleviating the financial strain associated with daily travel, ensuring reliable attendance in roles requiring on-site presence. Employers benefit from predictable staffing levels, particularly in urban centres where transit costs disproportionately impact lower-wage workers, while demonstrating social responsibility.
Benefits to Employee
Employees receive financial relief for daily travel costs, easing the burden of commuting while ensuring reliable attendance. This support reduces anxiety over unpredictable expenses like fuel hikes or transit fare changes, particularly benefiting lower-wage workers. By covering routes they might otherwise avoid due to cost, it also grants flexibility to prioritise safety or time efficiency.
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Ben is easily the most engaged initiative we’ve ever had. It gets everything to everyone in different locations, and I can’t even tell you how much time it’s saved us.
