What is 'delegation?
How is the so-called calculated? "delegation" or "diet" (literally translated as "care allowance" 😊) for drivers? The system is quite complicated at first glance, although in our opinion quite fair.
In this article, we will try to explain to you in simple words how this extra money added to your salary is calculated, which can constitute a large part, especially if you work in international transport!😊
The first and most important - this salary supplement, which we will call here DELEGATION (because that's how it works in our drivers' dictionary) - it is a reimbursement of costs that the driver must incur due to being away from work, therefore it is paid (actually refunded) without withholding additional taxes. You will find it in your payslip, usually described as "CAO vergoeding onbelast", i.e. "Tax-free reimbursement of costs under the collective labor agreement".
But let's get to the point - how is it calculated?
The two most important issues are determining whether the trip is multi-day or one-day and what is the start time (when the driver leaves the base) and return time. The key here is presence at the base (it may be the client's base and/or the agency's base, depending on the arrangements), so if the driver returns or just drives through the base (e.g. to attach trailers), the settlement will usually be calculated from the beginning.
In the case of a multi-day trip, delegations are higher - a maximum of €59.40 for 24 hours, while in the case of a one-day delegation - the maximum amount in 2024 is €34.14.
Let's start with a multi-day delegation - then the earlier the driver leaves on the day of departure, the greater the allowance he will receive, and similarly, the later he returns on the day of return, the higher the reimbursement will be.
Example:
I: The driver leaves on Tuesday at 7:00 and returns on Thursday at 18:00 - he will receive €39.18 + €59.40 + €38.76 = 137.34 II: The driver leaves on Tuesday at 18:00 and returns on Thursday at 7:00 – will receive €9.06 + €59.40 + €10.57 = €79.03
In the case of one-day business trips, the first 4 hours do not require additional reimbursement ("business trip"/"per diem"), regardless of what time the driver leaves the base. Each additional hour increases the delegation amount, up to 24 hours outside the base. Night hours are also paid more. Additionally, partial hours are charged, but these amounts are so small that we will not write about them here.
Example:
I: The driver leaves at 7:00 and returns at 6:00 p.m. - will receive €8.25 II: The driver leaves at 6:00 p.m. and returns at 7:00 the next day - will receive €24.09.
I hope that we have managed to explain to you this issue that is unclear to many. However, please remember that this article is for general information purposes only. We have not included all derogations and legal aspects, so it will not replace a conversation with your staff! 😊The aim was to shed light on the very idea of "delegation"/"care allowance".