The Forfait Mobilités Durables (FMD): A powerful lever to encourage the use of green mobility

The Sustainable Mobility Package (FMD)

[1]

is one of the flagship measures of the Mobility Orientation Law (LOM) enacted in France on December 24, 2019. This initiative, in force since May 11, 2020, aims to encourage employees to adopt soft mobility solutions for their home-to-work commutes.

As a company committed to promoting sustainable mobility, OpenFleet is taking a close look at the ins and outs of this scheme and its impact on companies and employees.

Sustainable Mobility Package (FMD)

[2]

What is it?

The FMD replaces the Indemnité Kilométrique Vélo (IKV) introduced in 2016, as well as flat-rate carpooling allowances.

It enables employers to pay, in full or in part, the home-to-work travel costs of employees who opt for sustainable modes of transport such as cycling, car-sharing, car-pooling or other solutions that emit less CO2 than the private car.

For whom and how does the FMD work?

Initially reserved for the private sector, the FMD has now been extended to public sector employees. FDM is available for :

  • employees on open-ended contracts (CDI ) or fixed-term contracts (CDD );
  • employees on temporary employment contracts ;
  • apprentices and trainees;
  • part-time employees ;

The FMD does not apply to certain special cases, such as those benefiting from company housing at their place of work, or free public transport provided by the employer.

Eligible means of transport include :

Private-sector employers can reimburse the cost of journeys made using sustainable modes of transport such as :

  • the bike
  • carpooling,
  • public transport,
  • Personal mobility equipment (motorized),
  • low-emission car-sharing vehicles, such as electric, plug-in hybrid or hydrogen-powered vehicles

In the public sector, the FMD initially concerns car-sharing and mechanical or electrically-assisted bicycles. However, a recent extension now includes motorized personal mobility devices and low-emission car-sharing services.

The employer determines the amount, capped at 700 euros per year per employee in the private sector, which is exempt from taxes and social security contributions. This amount can rise to 800 euros if combined with a public transport pass.

Any amount in excess of this threshold is subject to tax and social security contributions.

In the public sector, the annual MDF limit is set at 300 euros per employee, adjusted according to the number of days the sustainable mode of transport is used.

Obligation and Financing of the FMD :

Contrary to popular belief, the MDF is not mandatory. It can be introduced by unilateral decision of the employer, or by company or industry agreement.

Companies with more than 50 employees are obliged to discuss the FMD at their annual mandatory negotiations (Négociations Annuelles Obligatoires – NAO).

Financing of the FMD in the private sector is entirely at the employer’s expense, similar to the transport bonus.

Accumulation and Controls :

The FMD can be combined with other schemes, such as subsidies for public transport season tickets. However, there are ceilings to prevent abuse.

Employees and agents benefiting from the FMD must provide supporting documents, in particular an affidavit, to prove the effective use of eligible means of transport.

OpenFleet’s role in promoting sustainable mobility :

As a committed partner in the promotion of sustainable mobility, OpenFleet actively encourages companies to adopt the FMD as a key strategy for encouraging environmentally-friendly modes of travel.

Find out more about our solutions :

OpenFleet offers car-sharing technology to companies and local authorities. It enables vehicles to be made available with a reservation solution and access to the vehicle without the need for physical key management, making it easier for employees to get around.

Offering access to vehicles outside working hours and at weekends at attractive rental rates for employees or agents represents a promising opportunity. This initiative aims to encourage the ecological transition while reducing dependence on the private car.

The benefits are manifold: it offers employees a cost-effective alternative to individual vehicle ownership, while promoting more efficient use of company resources.

By facilitating access to sustainable, energy-efficient vehicles, this approach contributes to reducing greenhouse gas emissions and promoting a more environmentally-friendly lifestyle.

By allowing greater flexibility for personal travel outside office hours, this initiative also responds to the changing needs of employees, while encouraging reflection on transport choices and sustainable lifestyles.

However, effective implementation of this proposal requires rigorous booking management, careful attention to safety and insurance, and clear communication on the benefits and terms of use of this service.

By investing in a solid logistics infrastructure and actively promoting this initiative, companies can play a crucial role in promoting more environmentally responsible behavior.

Our conclusions on the Sustainable Mobility Package (FMD):

The Forfait Mobilités Durables represents a unique opportunity for companies to encourage more environmentally-friendly modes of travel, while offering tax benefits to employees.

OpenFleet has positioned itself as a strategic partner, offering tailor-made solutions to facilitate the implementation of carsharing. Together, we’re helping to create a more sustainable working environment and build a future where mobility rhymes with responsibility.



[1]

https://www.ecologie.gouv.fr/loi-dorientation-des-mobilites



[2]

https://www.ecologie.gouv.fr/faq-forfait-mobilites-durables-fmd