The Mobility Budget: Advantages & Eligibility

Have you heard about the mobility budget? This increasingly popular solution offers not only flexible compensation and sustainable transport options - but much more!In this article, we'll explore why it's the must-have solution for 2025, highlighting its many compelling benefits and outlining the eligibility requirements.

What are the advantages?

• Reduce your ecological footprint & CO2 emissions. By offering alternative mobility solutions to your teams they might leave the car home more often, or avoid commuting by working from home. In 2022, the transport sector in Belgium emitted approximately 24.19 million tons of CO₂ equivalent. This sector is a significant contributor to the country's total GHG emissions (source: Statista).
• Compose more attractive salary packages for your employees. In Belgium, employees are subject to a progressive income tax system, with rates ranging from 25% to 50%, depending on their taxable income (without social security contribution). Hence, the salary actually landing in employees wallets is sometimes much less than expected. They can choose to spend this extra budget on alternative and sustainable mobility options without paying taxes on it or on housing costs*. Important: Maximum 1/5 of the employee's total gross salary may be budgeted as a mobility budget. It should also not fail to reach and exceed a certain amount defined each year. Find more info on the mobility budget and regulations here
• Give employees more mobility flexibility. Let them choose how they want to spend this budget, whether it’s with a bike lease on Tuesday and the tram on Wednesday, by grabbing a shared car, or choosing to spend this to reimburse their rent or mortgage.
• Reduce the cost of your fleet. Managing a fleet can be exhausting between balancing administrative work, navigating complex tax systems, and keeping costs under control is no small feat. Transitioning employees to the mobility budget is one of the smartest ways to cut fleet costs. Even if not all employees switch, reducing the number of company cars can lead to significant savings. And if you decide to launch that mobility budget with Mbrella, you’ll not only lower costs but also simplify the admin work involved ;)

Eligibility:

For the company:

To benefit from the advantageous tax exemption, the employer must have made one or more company cars available to one or more employees for an uninterrupted period of at least 36 months before the implementation of the mobility budget. Companies that exist for less than 36 months can start with the mobility budget if they made one or more company car available to at least one employee.

For the employee:

If the company is meeting the requirements to offer the mobility budget, all employees that already have a company car or are eligible for one can benefit from the budget. However, eligibility for certain benefits under Pillar 2 (such as housing costs) may vary for employees. Learn more about the three pillars here. 

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For a more complete overview and understanding on the legal mobility budget, its perks and implementation, download our (free) e-book

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*conditions apply, more info here