The Third-Party Payer System: Navigating Mobility Solutions

In Belgium, the third party payer system is an approach for managing public transportation subscriptions. It allows a company to directly cover or reimburse public transport subscriptions, reducing administrative workload  and promoting more flexible transportation solutions.

Understanding the concept

At its core, the third party payer system introduces an intermediary that manages and finances the public transport subscriptions within Belgium for a company. The third party handles on one side the requests of the employees, and ensures that the employee will get their demanded subscription on time. On the other side the third party does the financial and administrative work for the employer. Via the third-party payer system the employee doesn’t need to pay the subscriptions in advance, and thus doesn’t need to wait to be paid back by the employer. The cost of the subscription is now directly paid by the employer to the public transport provider via the third party. The third party could be a government agency, an insurance company, or a specialised mobility service provider such as Mbrella. The main goal is to create a more efficient, sustainable, and personalised mobility experience.

Financial and Regulatory Dynamics

In most cases, the employer is required to cover at least 71.8% of the subscription cost. For SNCB/NMBS, this is always mandatory. For STIB/MIVB, TEC, or De Lijn subscriptions, this applies only when the subscription cost is not based on travel distance. The employer's contribution is capped at the equivalent of a 7-kilometer train commute, which is currently 43 euros per month.

For STIB/MIVB, TEC, or De Lijn subscriptions calculated based on travel distance, the employer’s contribution must match the reimbursement rate for an equivalent train trip. However, this contribution is capped at 75% of the subscription's cost.

Always check your sectoral joint committee if other contributions are applied.

The Belgian government has implemented, with the third-party payer system, a supportive regulatory framework to encourage the use of public transport (mainly train):

• Get a VAT refund on your Public Transport purchases
• A 20% discount when buying via the NMBS/SNCB (26% with VAT)

For subscriptions with SNCB/NMBS (and STIB/MIVB, if purchased with an SNCB/NMBS subscription), there is an extra incentive to opt for the third-party payer scheme. In this arrangement, the employer covers 80% of the cost, while the government subsidises the remaining 20%, ensuring the subscription is fully paid for the employee. For the employer, this means an additional expense of just 8.2%, while the benefit for the employee amounts to 28.2%. In addition, this actively promotes the use of public transport, reinforcing your commitment as an employer to sustainable mobility.

For STIB/MIVB, TEC and De Lijn subscriptions, this option is attractive to both employees and employers because it allows:

• Leave your employee debt-free: No need for them to pay upfront for their subscription
• Centralise all costs linked to employees’ public transport purchases: Gain clear visibility into your budget!

How does it operate within the mobility budget?

Consider a typical scenario: An employee might receive a mobility budget or allowances that can be used for:

• Public transportation subscriptions
• Bicycle purchases or leasing
• Electric vehicle charging
• Car-sharing services
• Bike allowances
• Partial home office compensation

All public transport subscriptions can be paid through the third-party payer system within the mobility budget. Employees can simply request their subscriptions directly via Mbrella. The cost of the subscription is then deducted from the mobility budget. However, for public transport purchases with the NMBS/SNCB, the part covered by the public authority under the third-party payer system cannot be charged to the mobility budget.

Still have questions?

Feel free to reach out to our Mobility Experts 📩