Employee expense reimbursement represents monetary or other compensation paid by an employer to an employee for costs incurred while performing work-related duties. These reimbursements are not considered salary and are not taxed as regular wages. Proper calculation and payment of such reimbursements are important to ensure that employees are financially covered for business-related expenses, while also complying with applicable legal regulations.

One of the most common reimbursements is compensation for commuting to and from work. This refers to the cost of public transportation or travel tickets that employees pay to reach their workplace. Employers may reimburse the actual incurred amount, thereby easing the employee’s commuting costs without increasing their taxable income.

Another form of reimbursement includes per diems and business travel expenses. When an employee travels for work purposes, the employer may reimburse costs related to accommodation, meals, and transportation. The amount of per diems and the method of calculation are usually defined by the company’s internal regulations or a collective agreement and must be in accordance with the Personal Income Tax Law.

There are also reimbursements for fieldwork and work performed outside the regular workplace. These are paid to employees who carry out tasks such as installations, inspections, or client consultations away from their usual place of work. Such reimbursements cover actual expenses incurred by the employee and are treated as refunds rather than part of regular salary.

It is important for employers to keep accurate records of these reimbursements and clearly define the conditions for payment. Transparency in calculation and documentation reduces the risk of misunderstandings and legal issues, while providing employees with assurance that all justified expenses will be reimbursed.

Proper application of employee expense reimbursements contributes to a fair and responsible relationship between employers and employees, motivates staff, and facilitates efficient performance of work tasks, especially when they involve travel or fieldwork.