Mobility budget: what do you need to know?

That's it! The mobility budget finally came into effect on March 1, 2019! You've probably heard a lot about it, but do you really know what this budget entails or how it can be used? We have decided to compile the most important information about this Mobility budget for you.

• The mobility budget in a few words
• Eligibility criteria for the mobility budget
• When does the mobility budget end?
• The 3 pillars of the mobility budget

The mobility budget in a few words

The mobility budget allows employees to manage the allocation of their mobility budget between various means of travel. This concept brings flexibility to the management of employee mobility. 

The mobility budget is voluntary. This means that there is no obligation to use this budget, neither for the employer nor for the worker. Moreover, this budget only concerns Belgium for the moment.

The second important aspect is that the mobility budget is calculated according to the principle of "total cost of ownership". This cost represents the annual gross cost of the company car for the employer, including tax and parafiscal charges, and "additional" expenses (financing costs, annual depreciation, fuel, insurance, contributions, etc.), to which the worker is entitled.

Who is eligible for this Mobility budget? As you can see, this budget is only for people who have a company car or are entitled to one. Let's look at the eligibility criteria in detail.

Eligibility criteria for the mobility budget

1. One condition for the employer

• He must have already made company cars available to one or more workers, for an uninterrupted period of 36 months (exception for employers active for less than 36 months, who must make one or several company cars available at the time of budgeting).

2. Two conditions for the worker

• He must have had a company car (in the last 36 months), or have been eligible for a company car (for at least 12 months.
• He must have a company car, or be eligible for a company car (for at least 3 months without interruption) at the time of application.
• Exceptions: hiring a worker, promotion or change of function before the budget comes into effect.

When does the mobility budget end?

For any employee, the mobility budget will cease no later than the first day of the month in which the employee:

• No longer has the right to a company car
• Has a mobility allowance: cash for car
• Has a company car that is not environmentally friendly

The 3 pillars of the mobility budget

Depending on what has been set up by the company, employees will have the choice of dividing their budget between different mobility solutions listed in the form of pillars. There are 3 pillars of the mobility budget.

Pillar 1: An environmentally friendly company car

In this pillar, employees have the choice of using an electric car or a car that meets strict CO2 emission standards.

The costs deducted for this pillar take into account the gross annual cost for the employer of financing and using the car, i.e. the "total cost of ownership".

The remaining amount of the budget can then be used in pillars 2 or 3. Note that it is possible not to use the first pillar at all and to go directly to the other pillars.

Pillar 2: Alternative and sustainable modes of transport

In this pillar, many sustainable modes of transportation are offered. The employee will be able to choose which ones to use depending on what the employer has put in place for its entire workforce.

Public transportation

Subscriptions for various means of public transportation for commuting.

Soft mobility

Takes over the purchase, rental and maintenance of the following means of transportation that do not exceed 45 km/h.

• Bicycles
• Electric bicycles
• Scooters
• Unicycles
• Mopeds
• Electric motorcycles

Sharing solutions

• Carpooling
• Cab or car rental with driver
• Car rental without driver for maximum 30 days/year
• Shared bikes or scooters

Housing costs

Rent or mortgage interest for employees living within 5km of the workplace

Company bike and bike allowance

• Provision of a company bike
• Payment of a bicycle allowance

If you would like to read more about company cycling, you may be interested in our article: 4 tips to encourage your employees to use bicycles.

Pillar 3: Cash balance

If the mobility budget has not been used in its entirety in the first two pillars, the employee will receive the remaining amount in cash with the first salary of the month of the following year. A social contribution of 38.07% due by the employee will be deducted from the gross amount. 

Discover more with our guide!