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The mobility budget was introduced in 2019. It is part of efforts to reduce traffic and the CO2 emissions in Belgium. In practice, the mobility budget allows you, as an employee, to exchange your company car for an environmentally-friendly car and/or alternative transport solutions of your choice.
How do I calculate the mobility budget?
The mobility budget corresponds to the total annual gross cost of the company car for the employer (TCO or total cost of ownership). It therefore includes all tax charges as well as related costs such as financing costs, fuel costs, solidarity contribution, insurance and all expenses related to a company car.
What options are included in the mobility budget?
You really need a vehicle, but it should be environmentally friendly
This involves exchanging your company car for another vehicle that is considered to be environmentally friendly, that is, electric or with a CO2 emissions level not exceeding 95g/km (2021). As this solution is cheaper than for the initial vehicle, the balance of the mobility budget can be spent on other forms of soft mobility (train, bicycle hire or scooters, etc.). This balance can also be recovered by subtracting a special contribution of 38.07%.
Advantages
- your mobility is assured
- reduced CO2 emissions
- balance can be used for other plans or recovered
Disadvantages
- does not reduce traffic
You rarely need a vehicle because you live close to your job
If you can get rid of your vehicle, your annual mobility budget can be spent on a range of mobility solutions that can be accessed according to your needs. The amount will allow you to travel by train with your family, rent a car if necessary, including going on holiday. The amount available can also be used to cover your accommodation costs if you live within a 10km radius of your place of work (rent or interest on a mortgage loan). The balance can be recovered subject to a special contribution of 38.07%.
Advantages
- flexible solutions
- reduced CO2 emissions
- option of reducing housing costs
- recoverable balance
Disadvantages
- requires organisation
You choose to convert your entire mobility budget into salary
You can also spend nothing on your mobility budget and recover everything at the end of the year, subject to the employee’s special contribution of 38.07%.
Advantage
- additional annual sum
Disadvantages
- salary to be used for your mobility
- significant final taxation (38.07%)
