The "Forfait Mobilités Durables" (known as FMD) is one of the key measures of the law on the Mobility Orientation Law (LOM) of 24 December 2019.
This scheme - which is entirely optional - allows employers to cover all or part of the cost of travel between home and work. In order to promote more ecological means of transport, this measure is only possible on one condition: that employees only use a so-called "soft mobility" transport option to make these journeys.
The "Forfait Mobilités Durables" (FMD) officially replaces the bicycle mileage allowance (IKV), which was introduced in 2016, and the carpooling package.

To which means of transport does the FMD apply?

In order to encourage "soft mobility" transport, the cost of home-work transport can be covered by using the following modes of transport:

• cycling, with or without electric assistance
• car sharing as a driver or passenger
• public passenger transport (other than that covered by the compulsory payment of season tickets)
• all devices available for rent/self-service such as scooters
• electric or hybrid means of transport. Example: Car-sharing is a system in which a company, a public agency, a cooperative, an association, or even a group of individuals informally make one or more vehicles available to customers or members of the service.

How does the "Forfait Mobilités Durables" (FMD) work?

The compensation granted under the "Forfait Mobilités Durables" (FMD) is totally tax-free for the employee and exempt from social security contributions for the employer, and allows for the payment of compensation, with a ceiling of €500/year/employee from 1 January 2021.

Good to know: initially reserved for private sector employees, the "Forfait Mobilités Durables" (FMD) has been extended to all civil servants (state, local and health).

*The FMD is regulated by decree no. 2020-541 of 9 May 2020 for the private sector and decree no. 2020-543 of 9 May for the State civil service.

Decree no. 2020-1547 and decree no. 2020-1554, both dated 9 December 2020, set out the terms and conditions for the application of this lump sum in the local civil service and the hospital civil service respectively. Here is the list of eligible private-sector employees and civil servants:

• employees on permanent contracts (CDI) or fixed-term contracts (CDD)
• employees on temporary contracts
• officials
• contractual agents
• apprentices
• employees on work-study programmes
• trainees
• part-time employees
• employees and agents who work in several different workplaces

The long-term mobility package cannot, however, be awarded to employees who:

• have company housing or a company car
• benefit from free public transport (shuttle) between their home and their place of work
• are transported free of charge by their employer
• are eligible for the provisions of decree no. 83-588 of 1 July 1983 establishing a special allowance (they can use public transport because of the extent of their disability)

The way to access it is very simple.
Firstly, for the company, this decision is taken either by company (or branch) agreement or by unilateral decision of the employer, after consulting the Social and Economic Committee. Secondly, for the employee, because once it has been put in place, any employee eligible for the scheme can claim access to the package by simply making a request to their line manager.

*The package can be combined with the employer's contribution to the public transport season ticket, but the tax advantage resulting from the two aids cannot exceed €500 per year or the amount of the reimbursement of the public transport season ticket, whichever is greater.
Source : Transport - Sustainable mobility package comes into force | service-public.fr