Depends on a lot of things but yes. A compensation based on distance is good
In Debmark we get “driving deductable” (not sure about the translation)
Thats also some cents per kilometer, after a certain amount of km. If you live super close you get nothing. And you get more if you live far away too.(if you live in certain munincipalities you get more)
It also doesnt matter how you get to work. Bike, train, bus or car. Its based on distance using google maps navigation iirc (or some similar tech)