The mobility budget allows employees to exchange their company car or their entitlement to a company car for a mobility budget.
They can use the mobility budget for one of the following options:
Pillar 1 : Environmentally friendly company car
Pillar 2 : Sustainable means of transport and housing costs
Pillar 3 : If the budget is not fully used in pillar 1 or 2, the employee can receive the remaining amount in cash, reduced by a special employee contribution of 38.07%.
The importance of the mobility budget is multifaceted for Belgian employers. On the one hand, it helps address environmental challenges by promoting greener modes of transport. On the other hand, it provides employees with more flexibility, increasing their satisfaction and engagement. Moreover, it can also generate significant tax advantages for the company.
Who is eligible for the mobility budget?
Employer
- Employer active for more than 36 months: only if, during an uninterrupted period of at least 36 months, you have provided one or more company cars to your employees.
- Employer active for less than 36 months: this minimum period does not apply, provided that at the time of introducing the mobility budget, you make one or more company cars available to one or more employees.
Employee
Any employee can apply for a mobility budget, provided that at the time of the request, they either have a company car or are entitled to one.
How to calculate the mobility budget?
Introduction of the mobility budget
If the employer meets the conditions mentioned above, they can start the procedure to introduce the mobility budget.
The introduction of the mobility budget requires :
- a clear internal policy,
- transparent communication to employees,
- and equal treatment of people in comparable situations.
Application : Once the mobility budget has been introduced by the employer, employees can request it in writing. The employer is not obliged to accept the request but must justify their decision. They must also communicate the calculation method of the mobility budget. If the employee chooses this option and the employer’s decision is positive, a supplement to the employment contract must be drawn up specifying the calculation method of the mobility budget.
Calculation of the mobility budget
The calculation of the mobility budget is based on :
- the employer’s annual gross cost of the company car,
- fiscal and parafiscal charges,
- company-related car expenses according to company policy
Total cost of ownership
The “total cost of ownership” (TCO) is the starting point for calculating the mobility budget, covering the monthly lease or rental price of the car along with fuel costs, insurance, the CO2 solidarity contribution, non-deductible VAT, corporate tax on non-deductible car costs, and other related expenses.
Formulas to calculate the TCO
The Royal Decree of 10 September 2023 provides two formulas for calculating the TCO:
- based on actual costs;
- based on lump-sum values.
Minimum and maximum amounts
The mobility budget is subject to the following minimum and maximum amounts:
- minimum amount: 3,000 EUR per calendar year;
- maximum amount: 1/5 of the employee’s total annual gross salary, with an absolute maximum of 16,000 EUR per calendar year.
Example
Let’s take the example of an employee with a gross monthly salary of 3,000 EUR and an identical employer cost in both cases. Instead of choosing a company car, he decides to allocate this budget to pillar 2 of the mobility budget, namely housing costs. This is possible because the employee lives within 10 km of his workplace.
We can see below the impact of the mobility budget compared to the company car:
Example calculation of net salary with company car
| Item | Amount |
|---|---|
| Gross salary | 3,000 EUR |
| Social security (RSZ) | -392.00 EUR |
| Work bonus | +51.00 EUR |
| Benefit in kind company car | +111.00 EUR |
| Taxable income | 2,770 EUR |
| Withholding tax | -516.00 EUR |
| Net salary subtotal | 2,254 EUR |
| Special social security contribution | -19.00 EUR |
| Benefit in kind | -111.00 EUR |
| Net salary | 2,123 EUR |
Note: The employee’s net salary depends on their personal situation.
Example calculation of net salary when exchanging company car for mobility budget
| Item | Amount |
|---|---|
| Gross salary | 3,000 EUR |
| Social security (RSZ) | -392.00 EUR |
| Work bonus | +51.00 EUR |
| Taxable income | 2,659 EUR |
| Withholding tax | -468.00 EUR |
| Net salary subtotal | 2,190 EUR |
| Mobility budget (pillar 2) | +600.00 EUR |
| Special social security contribution | -19.00 EUR |
| Net salary | 2,771 EUR |
Note: The employee’s net salary depends on their personal situation.
The employee allocates their mobility budget to rent, receiving an extra 600 EUR per month.
About RewardFlex
RewardFlex is a convenient tool that allows you to manage all mobility benefits for your employees in one place. You can easily create a personalized mobility plan, including public transport subscriptions and travel expense reimbursements. With this platform, you have full control to design and manage a flexible and tailored mobility budget — all from one central tool.
Would you like to implement a mobility budget with Monizze’s RewardFlex?