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You are a startup wanting to offer a salary package that meets the needs of your employees? But that’s also in line with your company values? Say no more, we’ve all been there! Extra holidays, warrants, Headspace subscriptions,... Benefits which are all very popular. But also highly taxed. So which benefit wins the (sustainable) trophy for the best salary package? The mobility budget, no doubt!
What’s the mobility budget?
In an attempt to untangle the mobility issues in Belgium, the federal government introduced the mobility budget back in March 2019. Those who have (the right to) a company car can exchange it for a mobility budget. You can spend this budget on three pillars: (1) an eco-friendly car, (2) sustainable means of transport (a bicycle or a shared car) or housing costs, and/or (3) cash.
This budget is calculated based on the total cost of ownership or TCO. It’s the total cost of the car you would have if you didn’t go for a mobility budget. It includes things like leasing, maintenance, and insurance costs, fuel, etc. For employers, the mobility budget is cost neutral. So who are the big winners? Employees and our environment!
The advantages
Employees are completely free to choose how to spend their budget (points for flexibility!). On top of that, every choice results in a net tax benefit for the employee (tax optimization points!).
An example: An employee working from home can use his mobility budget to pay for his house rent or interest on his mortgage, tax-free!
The goal
The mobility budget wants to get rid of the traditional company car and promote flexible mobility solutions. It is a step on the road from pollution to the solution and the best way for a young company to position itself as socially responsible!
Interested in implementing a mobility budget? Audrey from Mbrella will be happy to help you! Be sure to ask for the startup package deal! ;)