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How would you compensate employees for commuting to work? (lemmy.ml)

submitted 1 year ago by lntl@lemmy.ml to c/asklemmy@lemmy.ml

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Suppose there are two employees: Alice and Bob, who do the same job at the same factory. Alice has a 10 minute (20RT) commute, Bob commutes 35 minutes(70RT).

If you're the owner of the factory, would you compensate them for their commutes? How would you do it?

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[–] skullgiver@popplesburger.hilciferous.nl 1 points 1 year ago

The amount is not exactly standard. There's a maximum the employer is allowed to pay tax-free, but not every employer chooses to use that option. Some simply don't, others stick with lower, preexisting tariffs.

It's absolutely ridiculous of course, giving someone the maximum amount of tax free compensation is just about the cheapest way to raise wages and keep employees happy. However, the rate is not mandatory (outside of some CAOs, perhaps) and there's no legal right to claim compensation unless there's a contract that says you get to.