4. Encourage employers to allow their employees to cash out their parking benefits.

An employee whose workplace provides guaranteed and free parking will almost certainly choose to drive their private car to work, even if there is convenient and accessible public transportation available from their home to their workplace. In fact, the availability of parking is the primary factor influencing how people choose to commute to work. However, guaranteeing free parking spaces for some employees negatively impacts all employees, both those who drive and those who do not, in two ways.

So, how can we turn the wheel around and encourage employees to commute by other means while financially rewarding them for doing so? One way is through parking cash-out. The principle is simple: an employee who chooses to forgo their right to a parking spot will receive its value as a salary increase. Since 2016, a cross-party bill has been proposed in the Knesset, which would require employers with at least 30 employees to offer parking cash-out.

However, local authorities do not have to wait for legislation to be passed to implement this proposed law. Instead, they can present this option to employers (even through leading by example) and, at the same time, tax employers who do not offer it to their employees. First, the cost of guaranteeing parking spaces for employees is high for employers, and ultimately, it gets passed on to all employees, affecting their wages. Additionally, guaranteeing parking spaces encourages more and more employees to drive to work, which contributes to road congestion.

While it is possible that a company may increase its expenses in the short term, as parking cash-out will also be offered to employees who do not already drive to work, in the long term, the company can save significant costs on the construction or rental of parking lots and attract employees who will benefit from better public transportation and suffer less from morning traffic jams.