Local Travel Allowance

A local travel allowance is the common name for a flat-rate payment for local transport costs, granted to an employee during a business trip.

This is not a classic daily subsistence allowance (which covers only increased meal costs), but a separate, flat-rate addition intended to compensate for expenses on public transport (e.g., bus, tram) at the destination of the business trip.

When is a local travel allowance granted?

When the employee:

• is on a business trip
• uses public transport at the destination of the trip, and such use is justified.
• does not submit any actual receipts for actual travel costs incurred.

Zbyszek was on a business trip to Wrocław. The meeting with the client took place at the hotel where he was staying, right next to the train station. In the evening, during his free time, Zbyszek took a bus to the ZOO. Zbyszek will not receive a local travel allowance because his use of the bus was not related to the business trip.

How much is a local travel allowance?

The amount of the flat-rate local travel allowance in Poland is 20% of the full domestic daily subsistence allowance (in 2025, this is 9 PLN for each commenced day of domestic travel).

In the case of travel abroad, the flat-rate local transport allowance is 10% of the foreign daily subsistence allowance for each commenced day of stay. Additionally, the employee has the right to a flat-rate payment equal to one full daily subsistence allowance to cover the costs of travel to and from the railway station, airport, or port. Provided, of course, that such travel took place.

Kasia left for a business trip on Monday at 06:00. At the destination, around 09:00, she used a bus. She used the bus again the next day, around 11:00. She finished her business trip on Wednesday at 15:00. She will receive the allowance for 3 days of travel, i.e., 3 x 20% of the full domestic daily subsistence allowance.

Is the local travel allowance different for different types of transport?

No. Regardless of whether you travel by tram, metro, or bus, the local travel allowance is the same. It is also not dependent on the number of journeys made.

Does the local travel allowance also include parking costs?

No. Parking fees incurred by the employee are a separate type of expense that can be reimbursed to the employee based on submitted invoices or receipts.

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