Am I adequately compensated for the use of my car?
Am I adequately compensated for the use of my car?
"As a sales rep, I use my private car on business. I receive an allowance of 62 ct. per kilometre. How do I know if this allowance is calculated fairly, taking into account the sharp rise in petrol prices? If I have a car accident while on business, what happens to my accident insurance?
Marie, Geneva
In accordance with Articles 327 et seq. of the Swiss Code of Obligations (CO), if an employee provides working tools by agreement with the employer, he or she is entitled to appropriate compensation, unless otherwise agreed or customary. A written agreement, collective agreement or standard employment contract may provide for reimbursement in the form of compensation. If, with the agreement of the employer, the employee uses his own car to carry out work outside the company, he is entitled to reimbursement of the running costs of use and maintenance, as well as payment of vehicle tax and third-party insurance premiums.
According to the TCS, a vehicle costs an average of 70 ct. per kilometre, but this varies from one model to another. To find out the precise cost in your case, refer to the graphs or the TCS "kilometre costs" CD-ROM. By way of comparison, the current Appendix to the Ordinance on the business expenses of persons gainfully employed for direct federal tax purposes allows a deduction of 65 ct. per kilometre. In principle, you can ask your employer to update the amount of an inadequate allowance. Please note that you will need to take account of the specific circumstances of each situation, for example if your vehicle is more luxurious than necessary.
The risk of an accident while using the vehicle for work purposes is borne by the employer, but employees may be required to compensate their employer by contributing to the cost of repairing their own vehicle if they cause damage to it through negligence (321 e CO). If you work more than 8 hours a week, your employer is obliged to insure you against occupational and non-occupational accidents in which you could be injured.
