Federal mobility budget
Corporate mobility has been changing a lot over the past few years. Regulation has been passed to make it more green, sustainable and flexible. One of those regulations was the mobility budget. Let's dive into it!
Table of contents
What is the federal mobility budget?
The mobility budget is a Belgian incentive that allows employees to exchange their company car or their right to a company car for a federal mobility budget. Employees can spend this budget on alternative and sustainable mobility options without paying taxes on it. No taxes? In Belgium? Yes, it's possible!
And it gets even better: for employers, the mobility budget does not entail any additional cost compared to a company car. This is because the federal mobility budget is equal to the Total Cost of Ownership (TCO) of the company car of the employee. This means that all costs of the company car are added up to a budget. Switching to a federal mobility budget is hereby cost-neutral for the employer.
This budget may never be less than € 3.055 (2024) nor more than 20% of the worker's total gross annual wage with a maximum limit of € 16.293 (2024).
What is the total gross annual wage of the employee?
This includes the following: the gross salary of the employee + tips + benefit in kinds (Meal vouchers, eco vouchers, laptop, phone, insurances...) + premiums.
The gross annual wage doesn’t include holiday payment, allowances for occupational accidents and shares/stocks.
What are the advantages of the federal mobility budget?
By implementing the mobility budget in your company, you can:
Reduce your ecological footprint, your CO2 emissions
Compose more attractive salary packages
Reduce the costs of your fleet
Give employees more mobility flexibility
Is my company eligible for the mobility budget?
Companies must meet specific criteria to be able to offer the mobility budget to their employees. Primarily, they need to have made one or more company cars available to at least one of their employees for an uninterrupted period of at least 36 months. This eligibility ensures that the mobility budget can serve as an alternative to the company car system, promoting more sustainable transportation options.
⚠️ Companies that exist for less than 36 months are eligible for the federal mobility budget when they have allocated at least one company car to an employee.
Is my employee eligible for the mobility budget?
Employees can benefit from the mobility budget if they already have a company car or are eligible for one according to the company's car policy. This eligibility is determined by the employer's existing policies regarding company cars.
Previously, there was a requirement that employees had to have had a company car (or be eligible for one) for a certain period before opting for the mobility budget. This waiting period has been abolished, allowing employees to opt for the mobility budget immediately if they are eligible for a company car.
How can I use the federal mobility budget?
The pillars
Pillar 1: Eco-friendly company car
A mobility budget can still include a company car, as long as it is:
- an electric car
- a company car where:
The CO2 emission is less than 95g of CO2 per kilometer;
the emission standard for air pollutants must at least correspond to the standard in force for new vehicles or to a later standard;
if it is a hybrid car, the energy capacity of the electric battery must be at least equal to 0.5 kWh per 100 kg of car weight;
The car must score at least as good as the previous company car for the above three conditions
From 1 January 2026, only fully electric cars will be considered environmentally friendly. There is no obligation for the employer to offer Pillar 1.
Pillar 2: Sustainable mobility and housing costs
Employees can choose to spend their budget to buy, rent, lease and maintain an (electric) bike, scooter, hoverboard and more. Employees can also use their budget for parking costs and equipment costs to protect the driver and his passengers and improve their visibility.
Besides that subscriptions for public transport can be covered by the mobility budget. This applies to the employee and his family members living under the same roof. Public transport tickets do not have this restriction. This too regardless of whether they are bought through official or unofficial public transport providers.
Shared mobility is also a possibility. This refers to shared cars, bikes & scooters, rental cars (for maximum 30 days) and taxis.
Housing rent and capital and interest on mortgage loans can be financed from the mobility budget. This is if employees live within 10 kilometres (as the crow flies) of their normal workplace or if the employee works more than 50% from home.
Pillar 3: Cash-out
If you have a budget left over at the end of the year, employees receive the surplus in cash. This amount is reduced by a special employee contribution of 38.07%, which is used for social rights, such as pension.
Discover some examples of the mobility budget
Jeroen has a Volkswagen ID5 company car. He decided to start with the federal mobility budget, as he is also pleased with a smaller company car and the freedom to choose other mobility options. An example of what is possible:
| Total budget | €15.000 |
|---|---|
| Pillar 1 | €8.500 |
| Skoda Enyaq | €8.500 |
| Pillar 2 | €3.800 |
| Racing bike | €2.500 |
| Eurostar tickets | €400 |
| Shared Scooters | €600 |
| Bike maintenance | €300 |
| Pillar 3 | €2.700 |
| Cash (38,07%) | €1.027,89 |
Tom has the right to have an Audi Q4 e-tron company car. He decided to start with the federal mobility budget, as he doesn’t need his company car and is eligible for housing costs within the federal mobility budget. An example of what is possible:
| Total budget | €12.000 |
|---|---|
| Pillar 1 | €0 |
| Pillar 2 | €12.000 |
| Housing rent | €8.800 |
| Car rental | €1.700 |
| SNCB subscription | €1.500 |
| Pillar 3 | €0 |
How can I start with the federal mobility budget?
In 5 steps you are ready to start with the federal mobility budget!
1. Write a mobility budget policy
Decide how you will design your sustainable mobility policy and make sure you have the paperwork ready. Don't skip this step, you need to formally introduce a policy before you can get started.
Need help? Use our legal document templates or talk to our experts.
2. Determine the budget
The mobility budget is based on the Total Cost of Ownership (TCO). The TCO determines the budget and should be formalised in your mobility policy.
3. Receive a written request
Your employee wants to switch to the mobility budget? Great! The law requires a written request from the employee, for example, by e-mail.
4. Sign an addendum
This document contains your employee's agreement to exchange their traditional car for a budget and defines the size of the budget and the terms and conditions.
5. Manage the budget
Once your employee starts using the mobility budget, they should be able to check their balance at any time. Skip the paperwork and use Mbrella to keep track of the budget.
Which types of mobility budgets are available?
In Belgium, 3 types of Mobility Budgets exist:
The Legal Mobility Budget
The Flex Mobility Budget
The Business Mobility Budget
Legal budget | Flex budget | Business budget | |
|---|---|---|---|
| What is it? | Let employees switch their company car for a green & tax-free mobility budget | Give mobility freedom to your employees with a budget they can consume on all things mobility | Reimburse your employees for work-related mobility expenses like parking |
| What can it be spent on? | Eco-friendly cars, public transport, parking, electric steps, shared bikes,... housing (!) and cash | Same as the legal budget. But no housing costs | Every work-related mobility expense |
| How is it taxed? | Tax-free | Commuting with bike or public transport and parking costs are tax and RSZ free. Other commuting expenses can be taxed, but are RSZ free. Expenses used for private reasons are handled like gross wage. | Not taxed. A pure reimbursement |
| Payroll Integration? |  | | |
| Conditions |
| Can be used by everyone. Can also be used within the framework of a cafeteria plan | Can be used by everyone |
Legal budget | Flex budget | Business budget | |
|---|---|---|---|
| What is it? | Let employees switch their company car for a green & tax-free mobility budget | Give mobility freedom to your employees with a budget they can consume on all things mobility | Reimburse your employees for work-related mobility expenses like parking |
| What can it be spent on? | Eco-friendly cars, public transport, parking, electric steps, shared bikes,... housing (!) and cash | Same as the legal budget. But no housing costs | Every work-related mobility expense |
| How is it taxed? | Tax-free | Commuting with bike or public transport and parking costs are tax and RSZ free. Other commuting expenses can be taxed, but are RSZ free. Expenses used for private reasons are handled like gross wage. | Not taxed. A pure reimbursement |
| Payroll Integration? | | | |
| Conditions |
| Can be used by everyone. Can also be used within the framework of a cafeteria plan | Can be used by everyone |
Avoid the hassle of finding the right formula for your TCO.
With our free TCO Calculator template you can start calculating your mobility budget in no-time.
Related content
Employee Mobility Plan
Legal Document Templates
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FAQs
Every question has an answer. Can't find the answer to your question? Let us know!
When your employees hit the road to a customer or to an event, they often have mobility-related expenses like parking, public transport, electric steps,.... These professional expenses can be reimbursed via a business budget.
The flex budget can be used in multiple ways. The budget can be a reward for the employees that didn't drive many kilometers last year. It can be a budget that the employee can use for his/her commuting expenses. The flex budget can even be used to handle the mobility part of your flex income plan (cafetariaplan).
Depending on the expenditure taxes and social contributions are paid. Commute expenses for parking, bike and public transport are tax and social contribution free. Commute expenses for other mobility services are not tax free, this can influence personal tax income (employee) & company tax (employer). But are social contribution free. Mobility Expenses for private reasons are handled like it is gross wage.
The Flex mobility budget is a budget that all employees can use to reimburse their sustainable mobility expenses. They can spend the budget on public transport, parking, electric steps, shared bikes... instead of limiting their options to only train for instance. It's the ideal alternative for companies that don't meet the strict conditions of the federal mobility budget or who want to reward their employees with a sustainable perk. But no housing costs are possible, and taxes and social contributions are paid depending the expense type.
The federal mobility budget can not exceed 20% of the total gross wage of the employee (gross wage + all other benefits, but no holiday payment). Besides this the federal mobility budget can not be higher than 16.293 euro and not lower than 3.055 euro (figures of 2024).
Mbrella is the first corporate mobility solution that is designed to empower employees and unburden HR professionals completely. We offer software that helps you manage mobility budgets, commuting allowances, public transport subscriptions and much more.
If you live within 10 km of your normal place of work, you can finance rent or mortgage interests and capital payments with the federal mobility budget. Is your normal place of work explicitly mentioned on your employment contract BUT do you usually (more than 50%) work somewhere else (like from home)? Then your 'normal place of work' can be your actual place of work. Be careful that your employer needs to prove this to the Administration.
Depending on the reimbursement history of the company to the employee the bike allowance, the public transport reimbursement, the employer organized carpool reimbursement and the provision of a company bike can be on top or within the federal mobility budget if the allowance was there at least 3 months before the request for the federal mobility budget.
No, employers are not required to offer all mobility options within the federal mobility budget. They have the flexibility to choose which options to provide, based on their company policy and the needs of their employees. Employers must ensure clear communication about the available options to their employees. Expense categories can be managed in Mbrella.
Belgian employers are not required to offer the federal mobility budget to every employee with a company car. It is a voluntary option that employers can provide, and both the employer and the employee must agree to participate in the mobility budget system. This allows for flexibility and negotiation between the employer and employee regarding whether to switch from a company car to the federal mobility budget.
Yes, the federal mobility budget benefits smaller companies by being cost-neutral and enhancing employee satisfaction through flexible, eco-friendly transport options, while offering tax advantages and supporting sustainability goals.
To calculate the allowed mobility budget, you need to determine the Total Cost of Ownership (TCO) of the company car. This including all related expenses such as purchase or lease price, fuel, insurance, maintenance, taxes, and depreciation. You can use the actual costs formula or the lump-sum formula. The chosen calculation method should be used consistent within your company. Mbrella can help you calculating the TCO.
Employees eligible for the Federal mobility budget must either have a company car or be eligible for one under their employer's (car) policy. The previous waiting period requirement has been removed, allowing immediate eligibility. However, the mobility budget can only available if the employer meets some requirements (See "Is my company eligible to offer the mobility budget?")
Companies eligible for the mobility budget must meet specific criteria. Primarily, they need to have made one or more company cars available to their employees for an uninterrupted period of at least 36 months immediately before implementing the mobility budget. This eligibility ensures that the mobility budget can serve as an alternative to the company car system, promoting more sustainable transportation options.
The Federal mobility budget is a flexible system allowing employees to exchange their (right to a) company car for a budget. This budget can be spent on eco-friendly cars, sustainable transport options, and housing costs. Unused budget can be received as cash at the end of the year at a favorable tax rate. This offering tax benefits and promoting sustainable mobility.