Iwona Konieczna How much is a driver’s allowance and who is entitled to it?
Table of contents
What is the driver’s allowance?
A driver’s allowance is a monetary benefit given to drivers performing official duties away from their permanent place of work. It is an important form of compensation for costs related to food and accommodation during business trips. The legal basis governing the payment of per diems is the Decree of the Minister of Labor and Social Policy of January 29, 2013, which specifies the amount of per diems for both domestic and international travel.
When does it apply?
According to the regulations, the driver’s allowance applies in situations where the business trip meets certain conditions:
- The driver must be away from his permanent residence or place of permanent work.
- The business trip must last at least 8 hours. If the trip lasts less than 8 hours, no allowance is payable.
- The employer may not provide full board during the trip. If the driver receives, for example, lunch or breakfast from the employer, the per diem is reduced accordingly.
The per diem covers the costs associated with food during a business trip. Drivers performing both domestic and international transport are eligible to receive it, however, there are different rates for international transport, which will be discussed later in the article.
Who is eligible?
- Drivers employed under a contract of employment who are assigned to carry out transportation outside their permanent place of work.
- Self-employed drivers who are also allowed to account for per diems, as long as they meet the conditions for business travel, according to the interpretation of tax regulations (including the ruling of the Director of National Tax Information on June 23, 2022).
Professional drivers often spend many days away from home, which generates additional living expenses. Per diem regulations are designed to compensate for these costs.
How much is a professional driver’s allowance?
The amount of per diem depends on the length of the business trip and the country in which it is carried out. It is worth noting that per diem regulations for drivers differ depending on whether they pertain to domestic or foreign travel. In this section, we will focus on domestic per diems.
As of January 1, 2023, under current regulations, the domestic allowance for a professional driver is PLN 45 per day. This amount is intended, in theory, to cover the cost of food incurred by the driver during a business trip. The value of the allowance can be calculated in proportion to the duration of the trip:
- Travel less than 8 hours – no per diem
- Travel between 8 and 12 hours – 50% of the per diem
- Travel over 12 hours – full per diem
The number of hours spent in travel is also important since each full business trip day entails the right to a full per diem.
Example: If a driver leaves for a business trip at 9:00 a.m. and returns the same day at 6:00 p.m., which means that the trip lasted 9 hours, he is entitled to 50% of the per diem, or PLN 22.50. If the trip lasted more than 12 hours, he would receive the full rate of PLN 45.
Allowance reductions
Driver per diems may also be reduced if the employer provided full or partial board during the business trip. The reduction of the per diem occurs in accordance with the following rules:
- Breakfast: -25% of the value of the allowance
- Lunch: -50% of the value of the allowance
- Dinner: -25% of the value of the allowance
Example: If the employer provided the driver with lunch during the trip, the amount of per diem payable will be reduced by 50%, i.e. from PLN 45 to PLN 22.50.
The per diem amount for multiple-day transports (examples)
- One-day trip: The driver leaves at 8:00 a.m. and returns at 6:00 p.m. The duration of the trip is 10 hours, so he is entitled to half the per diem, or PLN 22.50.
- Two-day trip: the driver leaves at 8:00 a.m. and returns the next day at 10:00 a.m. The total duration of the trip is 26 hours, so the driver is entitled to a full per diem (PLN 45) for the first day, and half of the per diem (PLN 22.50) for the incomplete second day (2 hours). In total, the driver will receive PLN 67.50.
- Three-day trip: the driver leaves at 8:00 a.m. and returns after three days at 8:00 p.m. For each full day of the trip he is entitled to a full allowance, so for three days he receives PLN 135.
Per diems for a truck driver during international travel
Foreign travel is a daily occurrence for international drivers, who travel thousands of kilometres to carry out transports between countries. When traveling abroad, per diem rates are higher than in Poland and vary depending on the country to which the driver is sent.
Per diem rates for drivers in international transport (2024)
- Germany: 49 euros per night
- France: 50 euros per night
- Italy: 48 euros per night
- Spain: 50 euros per night
- Czech Republic: 41 euros per night
These rates are set in accordance with specific international agreements on the business trips of those working in international transport. These rates vary from country to country, as the cost of living for an employee varies from country to country.
Are driver per diems taxable?
Pursuant to Article 21(1)(16) of the Personal Income Tax Law, per diems and other benefits drivers are eligible to receive on business trips are exempt from personal income tax and are not subject to Social Security contributions, provided the amount does not exceed set limits.
The allowance, which is a benefit intended to cover the cost of food during a business trip, does not constitute income, which means that it does not count towards the basis for calculating income tax and Social Security contributions.
Exceptions to the tax exemption
If a transport company pays drivers per diems in excess of what the regulations stipulate (i.e., above the rates set by the regulation), the excess may be considered employee income and as such be subject to taxation and social security contributions.
Example: If a company pays a driver PLN 60 domestic per diem for each day of travel, the excess above PLN 45 (i.e., PLN 15) will be included in the base to calculate tax owed and Social Security contributions.
Similarly, if a driver is on an international trip and receives a per diem higher than that provided for in the foreign per diem tables, the excess amount will also be taxed.
The Bottom line: is it enough compensation?
Driver per diems are an important component of wages in the transport industry, designed to cover costs related to food and overnight stays during business trips. The changes planned as part of the Mobility Package envisage standardizing the amount of per diems in EU countries, which may mean pushback from Polish enterprises.
