Understanding the Mobility Budget - Frequently Asqued Questions

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The Mobility Budget is evolving from a voluntary system to a mandatory requirement. Starting January 1, 2026, all Belgian companies offering company cars must provide employees who are entitled to a company car also the option of a Mobility Budget. This marks a fundamental shift in how companies approach employee mobility. 

This new legal framework creates both obligations and opportunities. In this FAQ, you'll find all the practical answers you need to navigate these changes. From understanding what a mobility budget actually is to calculating budgets and managing tax implications. 

Have specific questions about your situation? Our mobility experts are here to help you create a solution that fits your organisation. 

The Mobility Budget is an annual budget that employees receive as compensation for waiving their right to a company car. This budget can be used for various mobility expenses, and any unused funds are paid out in cash at the end of the year. 

It can be spent in three main areas:   

  • Pillar 1: eco-friendly company car   
  • Pillar 2: sustainable means of transport and accommodation costs   
  • Pillar 3: cash 

The budget is based on the Total Cost of Ownership (TCO) of the company car to which the  employee is entitled. Some important key points: 

  • Minimum: €3,164 per year 
  • Maximum: 20% of the total gross salary, with a ceiling of €16,875 per year 
  • The calculation factors of the TCO include leasing costs, insurance, and other related expenses 

The budget can be used for: 

  • Pillar 1: lease of an eco-friendly car (if offered by the employer)
  • Pillar 2: soft mobility solutions (like bicycles, electric scooters), public transport costs, accommodation costs, and organised shared transport
  • Pillar 3: cash payout of the unused budget at the end of the year

The employer draws up a policy containing all the rules regarding the Mobility Budget, such as eligible employees and budget allocations within the Mobility Budget. Employees can apply for the budget in writing. Once the employer has approved the application, the terms and conditions should be documented in an addendum to the employment contract. 

Employers must monitor expenditures and ensure timely payments to employees. The Mobility Budget can be adjusted in the event of job changes or promotions. Employees retain the right to their budget during certain absences, but the budget may also be reduced or withdrawn in the event of contract suspension. The Mobility Budget is also included in the calculation of the severance payment.  

  • The eco-friendly company car (pillar 1) is submitted to the normal taxation of company cars
  • Soft mobility solutions and accommodation costs (pillar 2) are exempt from social security contributions and taxes
  • The cash payout (pillar 3) is tax-free, but is subject to a social security contribution of 38.07%

In general, the Mobility Budget cannot be combined with commuting allowances or bicycle provisions, unless the employee had these benefits before switching to the mobility budget.  In the future, the reimbursement of other mobility costs will also be handled via the Mobility Budget. 

If you have questions, need assistance with the implementation of the mobility budget or the calculation of the Total Cost of Ownership (TCO), please contact: