The mobility budget is a budget that the employee can create by trading in a (right to a) company car.

The employee can then spend that budget within three pillars.

• Pillar 1: an environmentally friendly company car
• Pillar 2: sustainable mobility
• Pillar 3: balance mobility budget (in cash)

 The mobility budget was introduced in 2019 with the aim of greening and (especially) reducing the size of the company car fleet in Belgium. To give employers and employees an extra push, the mobility budget was given a (para)fiscally very favorable regime.

For example, all forms of sustainable mobility (pillar 2) within the mobility budget are completely exempt from social security contributions and taxes. Cost to the employer is thus equal to net of the employee.

Sustainable mobility includes, for example: the purchase of a bicycle, a pedestrian allowance of EUR 0.27 per kilometer of commuting, and payment of monthly rent or mensual for a home if the home is within 10km as the crow flies from the usual place of employment.

While the balance of the mobility budget is subject to 38.07% NSSO contributions, it is completely exempt from personal income tax.

Want to know more about what employees can do with the mobility budget? You can read about that in this blog post 👉

In short, while as an employer you want to maximize your commitment to sustainability, you can motivate your employees with higher net income when they move in a sustainable manner.

How do you get started? You can read all about that in this blog post 👀