Swansea Council is giving city centre workers with annual parking permits three extra months free.
The decision has been made because of restricted travel due to the coronavirus pandemic.
Many Swansea city centre workers pay a monthly fee for parking but are unable to travel into the city centre to make use of their parking permit.
The latest plan will provide permit holders with three extra months parking at no charge.
Those who pay annually for their permit will also have their permit period extended for a further three months to take this into account.
It comes after a number of motorists said they were given conflicting advice about what they should do with their permits over the lockdown period.
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According to Mark Thomas, Swansea Council cabinet member for environment and infrastructure management, the council's system does not allow permits to be suspended, but providing motorists with three months free parking is an alternative measure to ensure they are not out of pocket.
He said: "We are aware some motorists have contacted the council about them still paying monthly direct debits for parking in our car parks.
"Requests have been made to suspend monthly direct debits but our systems are not set up to allow this. Obviously we want to ensure motorists are not out of pocket and paying for a service they are not receiving.
"So we have looked at an alternative way to make sure motorists are not penalised for the current restrictions we all face.
"All of those who pay annually will have their permit period extended for a further three months to take into account the current lockdown."
