Kent County Council is looking to introduce a salary sacrifice arrangement that will enable employees to save tax and national insurance on bus travel.
The local authority, which employs 46,000 staff, hopes to launch the scheme in the new year and is currently negotiating deals with bus companies.
Employees who take part in the scheme will be able to buy bus tickets out of their gross salary and will therefore make significant savings on tax and national insurance. The scheme will be subject to approval by HM Revenue and Customs.
Colin Miller, reward manager at Kent County Council, explained: "Obviously we wanted to be reasonably flexible with what people do, however, anything we do must comply with HM Revenue and Custom's requirements."
He added: "We felt this salary sacrifice scheme was a good idea on a number of fronts. If we can capitalise on something that works for employees, works for reducing individual carbon footprints and supports public transport, then there is a win all round."