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travel pass

With the Cobee Travel Pass, you can adjust the amounts that your employees want to enjoy with complete freedom and flexibility.

There is no need for any monthly top-ups and each employee can use the amount they need each month, bearing in mind that the tax exemption has a limit of €136.60. In other words, that money will never be lost because each user is free to use it whenever they need to for journeys on city buses, the metro, tram or suburban railway. For example, a user might only buy a single one-way ticket for €2 one month but buy a complete travel pass for €54 the next.

The law states that transport passes are tax-exempt up to €136.36 per month, with a maximum of 11 months for a corresponding total of €1,500 per year.

Any amounts above this are not tax exempt. In turn, if the company offers this option, employees can save their balance on their vouchers or card from one month to the next in order to buy products that cost more, such as a quarterly travel pass.

According to the law, the transport being paid for must be for the employee to travel between their place of residence and the workplace in order for the tax exemption to apply. This would be the case for employees who work in a city like Madrid but live in cities in a different region, such as Toledo or Segovia. In their case, they could use their travel card or voucher to buy long-distance train tickets for travelling to their place of work.

It is assumed that employees take responsibility for the proper use of this benefit under the policy agreed with the company via a collective bargaining agreement or novation contract. In terms of flexibility, many service providers base their solutions on closed and rigid systems that require employees to request the monthly amount they need to cover their travel expenses. On the other hand, there are a number of entirely flexible digital solutions that adapt to the daily needs of employees.

At Cobee, for example, there is no need to place an order in advance: an employee can spend €2 one month on a one-off journey and then buy the monthly pass for the following month.

Employees prefer the card format nowadays. Cards provide total flexibility when it comes to paying for things while also giving employees greater autonomy as they don’t need to make sure they spend the exact amount that the vouchers are worth. In order to offer a better experience to employees, paper vouchers have been transformed into a card that brings a number of advantages:

  • Increased convenience
  • Increased spending flexibility
  • No need to place regular orders
  • No manual top-ups
  • No need for choosing in advance.

If the benefits provider offers a card format, you will most likely be able to make convenient online payments. At Cobee, we offer the choice to make card payments as if it were a VISA card. There is no need to enable the card for online purchases or contact your Human Resources team.

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