The country’s first workplace parking levy got the green light last night when Nottingham City Council officially endorsed its WPL.
Businesses will also have to pay for a licence for their parking space under the scheme, which will raise £14 million a year for public transport infrastructure development.
It will be down to each employer as to whether they pass the charge onto their employees.
Cllr Jane Urquhart, who has responsibility for transport and area working, said: "Employers have the opportunity to introduce travel plans, parking management policies and salary sacrifice schemes to reduce their liability.
"If you travel to work by bus, tram, bike or walk, or if your employer has 10 or fewer parking spaces you will not have to pay the charge.
"If you car share it could be reduced. If your employer is liable it is their decision whether to pass the levy (about £1 per day to begin with) onto employees."
No charge will be applied to employers until April 2012 but the scheme will be introduced, without charge, six months prior in October 2011.
Companies in the city that provide more than 10 work parking spaces will be charged £265 a year per space.