Employers will be able to pay their workers more in travel expenses next year, without them having to pay extra tax.

In 2023, the maximum travel expense rate is set to rise from 19 cents a kilometre to 21 cents and then again to 23 cents in 2024, broadcaster NOS has reported.

Tax free travel expenses have remained at 19 cents a kilometre since 2006.

Sources in The Hague told NOS that the details are still to be finalised and will be published along with the rest of the 2023 spending plans in September.

MPs had called for a rise in travel expenses in March, because of soaring petrol prices. The government has already reduced the tax on petrol until the end of the year at least.