This applies to distance compensation in construction
The current wage agreement in the main construction industry has also meant a new distance allowance since 2023. This was increased again at the beginning of 2024. In this article, you can find out how high it currently is and how you can implement the legal requirements quickly and easily .
Definition: What is the travel distance allowance?
The distance allowance, also known as travel time allowance, compensates employees for trips from home or the office to the more distant construction site. For employees, they mean – often long, exclusively work-related – travel times.
In most cases, they are not done with your own car, but with a company vehicle or shared transport, so they cannot be claimed on your tax return. However, most employers do not count this time as working time on the construction site.
The mileage allowance compensates employees for this time in monetary terms. The amount of the distance compensation depends on the actual distance between the company and the construction site.
Construction sites with a daily drive home:
- Up to 50 km: 7 Euro.
- 51-75 km: 8 Euro.
- Over 75 km: 9 Euro.
Construction sites without a daily drive home:
- Higher travel time compensation: Between 9-39 euros per journey.
- Max. 2 compensations per week.
Examples (per route):
Over 75 km: 9 Euro.
Over 200 km: 18 Euro.
Over 300 km: 27 euros.
Over 400 km: 39 euros.
Additional regulation:
Over 500 km: one day off every 4 weeks.
Example
Those who drive to the construction site on Mondays and back home on Fridays usually receive between 18 and 78 euros.
How the right software can help with distance compensation
The pure Time tracking is no longer sufficient to calculate the Construction payroll to calculate the With the Construction payroll module from 123onsite you can still make your payslips automatically and very easily – using preset distance information.
Optimized travel time compensation with 123onsite
You already use the mobile Time tracking from 123onsite? Then you know the advantages:
- Error-free working time recording without time sheets.
- Offline modewhen no Internet is available.
- Real-time data accessanytime, anywhere.
Now it’s even easier: With the construction wage module you can also easily calculate travel time compensation.
This is how it works:
- Check conditions:
The app automatically recognizes whether an employee is entitled to compensation. - kilometers:
With the help of zones that correspond to the tariff mileage levels, the software calculates the compensation – simply by entering the project distance.
The best thing is that the calculation is completely automated, without employees having to check it manually. Define the project distances once and the software does the rest!
By the way: You are extremely satisfied with your employees and want to give something back to them? Some contractors deliberately set themselves apart from the industry by including the entire route as working time. You can easily adjust the setting to suit your project.
The advantages of software for Construction payroll at a glance
With an automated digital Time tracking and calculation of construction wages, you can bring more efficiency to your construction company. At the same time, you ensure that you implement the requirements of the collective agreement.
- The set of rules is adapted to the current requirements, it runs automatically thereafter. Of course, you can always control or manually adjust.
- Wage calculation and payment runs smoothly and changes in the law do not interfere with your day-to-day operations.
- You don’t tie up any more capacity in your accounting department.
- The software minimizes errors.
- Your employees will continue to be satisfied because their wages will be paid without errors or delays even under the new system.
- All calculations are clear and understandable, both for accounting and for your employees.
Bottom line:
Integrated software for Time tracking and Construction payroll takes the pressure off your construction company. Your employees are satisfied, the process runs stress-free and the changes in the law can be implemented very easily right from the start. In this way, the change in the calculation of travel time compensation for construction is implemented quickly and easily through sensible digitalization.
Picture credits: 123onsite/Timo Lutz advertising photography
Maurice Stelljes
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