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Mobility budget: A flexible solution for sustainable transportation

Updated over a week ago

What is a Mobility Budget? 🤔

Introduced in March 2019, the mobility budget aims to untangle Belgium's mobility challenges. It allows employees with (the right to) a company car to exchange it for a budget that can be spent on:

  1. An environmentally friendly company car

  2. Sustainable transportation options or housing costs

  3. Cash payout (for any remaining budget)

Who Can Participate? 👥

Employers:

  • Must have offered company cars for at least 36 months at the time the Mobility Budget is introduced.

  • Exception: Startups (in existence for <36 months old) must provide at least one company car at the time the Mobility Budget is introduced.

Employees:

  • Must have (the right to) a company car

  • Eligibility should be objectively defined in the car policy (e.g., based on function, seniority, salary scale, education)

How Does It Work? 🛠️

The mobility budget is divided into three pillars:

1️⃣ Environmentally Friendly Company Car

  • Electric or low-emission vehicles (CO2 ≤ 95g/km)

  • Battery capacity ≥ 0.5 kWh per 100 kg of vehicle weight

2️⃣ Sustainable Transportation & Housing Costs

  • Public transport 🚆 (including for family members)

  • Private transport solution (bicycle, car rental, etc.) 🚲

  • Shared mobility options 🛴

  • Housing costs (within 10km of work or 60% remote work) 🏠

3️⃣ Cash Payout 💰

  • The remaining budget is paid in cash in January of the following year (subject to a special social security contribution of 38.07%).

Budget Calculation 🧮

  • Based on the Total Cost of Ownership (TCO) of the company car

  • Includes lease price, fuel, insurance, taxes, and other related costs

  • Minimum budget (to be indexed) : €3,000

  • Maximum budget (to be indexed) : €16,000 or 1/5 of total gross annual salary

Implementation Steps 📋

  1. Reach out to Payflip so we can add the mobility budget to your Payflip tool

  2. Calculate the TCO and assign the budget per employee

  3. Create a mobility budget policy

  4. Have participating employees sign an employment contract addendum

Benefits 🌟

  • Flexibility in transportation choices

  • Environmentally friendly options

  • Budget-neutral for employers

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