In the U.S., employers can subsidize bus passes, van pools, and bicycling to work (I guess provide bikes?) as a tax-free benefit. I’d certainly offer that.

I would not provide more $ to the employee who took a job further from home, unless I was doing on-site jobs on various job sites, work that moved around. Events, construction, etc. My employer pays for airfare or mileage for event work, that is not taxable to the employees.

Even when I did temp work I wouldn’t take jobs far from my house, or any that were not one bus away, even though I have a car because cars break sometimes.

I DO think of commute time in a car as unpaid work but manage that in my life by working near home, or living near work.