Can you offer bike leasing alongside the mobility budget?
Yes, you can. The mobility budget in Belgium is a government initiative that promotes sustainable travel by allowing employees to organise their mobility in a personal and environmentally friendly way.
Bicycle leasing through the mobility budget is available to employees who are entitled to a company car. Recent legislative reforms aim to extend this option to a broader group of employees, but those changes have not yet been implemented.
Outside of the mobility budget, bike leasing can be offered to all employees.
Let’s dive into it a little deeper ...
What is the mobility budget?
The mobility budget is a sum allocated by the employer, giving employees the flexibility to organise their mobility in a way that suits them. Employees can choose an eco-friendly company car, alternative transport options such as public transport, cycling, or shared mobility, and even – under certain conditions – use the budget to cover part of their rent or mortgage. This system supports flexible, sustainable mobility tailored to individual needs.
How does the mobility budget work?
The mobility budget consists of three pillars:
- Pillar 1: eco-friendly company car
Employees can choose a company car that meets specific environmental criteria, such as being electric or hydrogen-powered. The car must also fall within their allocated mobility budget. - Pillar 2: sustainable mobility solutions and housing costs
This pillar includes spending on sustainable transport options such as (electric) bikes, public transport subscriptions, shared cars, and even housing costs near work. - Pillar 3: cash disbursement
Any remaining budget not used under Pillars 1 or 2 can be paid out in cash. However, this payout is subject to tax and social security contributions, making it the least advantageous option financially.
Bicycle leasing within the mobility budget
Within Pillar 2, employees entitled to a company car can choose to lease a bicycle using their mobility budget. This allows them to purchase a quality bicycle for commuting and other trips in a fiscally advantageous way.
Bike leasing outside mobility budget
Not every employee is entitled to a company car. If you want to offer bike leasing to employees who don’t qualify for the mobility budget, you can do so via a gross salary exchange or through an end-of-year bonus scheme. This option can be more budget-friendly for employees than leasing a bike via the mobility budget. Why? Because employer social security contributions are included in the savings, increasing the net financial advantage for the employee.
Is gross salary exchange interesting for bike leasing?
In a gross salary swap, the monthly leasing cost is reduced by the amount the employer saves on social contributions. This means the employee gives up less gross salary than the actual cost of the bike lease. The result? A more financially attractive deal.
In most cases, this system offers employees a greater tax benefit than leasing through the mobility budget. That’s because the mobility budget is charged directly with the full leasing cost, without any additional optimisation through social contribution savings.
Let’s clarify with an example:
Suppose an employee leases a bike that costs €100 per month.
- Via the mobility budget, the full €100 is deducted from the employee’s budget.
- Via gross salary exchange, thanks to savings on employer contributions, the employee may only see a €70 reduction in gross salary. That’s a significant difference.
Employers who want their staff to get the most financial benefit from bike leasing would do well to compare both systems and calculate which option works best in their specific context.
The future: what does the new coalition agreement say?
A new government means new rules – and that includes changes to the mobility budget. While the details are still being finalised, here’s what we know so far:
- The current mobility budget will be reformed into a mobility budget for all. It will be based on an available budget from which employees can choose between a car or other modes of transport, with costs calculated according to their actual value. The new mobility budget will replace existing employer contributions toward commuting and private travel, aiming to simplify the current system. The new system will receive (para)fiscal benefits to keep it financially attractive for both employers and employees. The reform will include transitional measures to ensure a smooth implementation.
- Employers will be required to systematically offer the mobility budget to employees entitled to a company car.
We’ll keep a close eye on developments for you. In the meantime, do you have questions about bike leasing? Don’t hesitate to contact a Cyclobility expert.
FAQ
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Taxation depends on how the budget is spent, based on the three official pillars:
- Eco-friendly company car → Taxed in the same way as a regular company car.
- Sustainable mobility solutions (such as public transport, cycling, shared mobility, renting close to work) → fully tax-free.
- Cash-out of remaining budget → taxed at solidarity contribution rate of 38.07%, but no additional income tax is applied.
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The mobility budget is allocated gross, based on the total cost of your company car. How much you net out depends on your choices. Spending within pillar 2 is entirely net, while a cash payment in pillar 3 is partly taxed.
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The amount of the mobility budget is based on the Total Cost of Ownership (TCO) of your company car, including:
- Lease price or depreciation
- Fuel or electricity
- Taxes and insurance
- Maintenance costs
This total amount is converted into a mobility budget that you can spend freely within the three pillars.
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Not everyone is automatically entitled to a mobility budget.
It depends on:
- Your employer, as they must offer the system.
- Whether you are entitled to a company car (or already had one).
- The applicable minimum conditions within your company, such as seniority.
In the future, there are plans for a more general mobility budget for all employees, separate from the company car policy. This could become a tax-advantaged allowance for commuting, public transport, cycling, and so on. For now, we’ll have to wait and see.
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While the system may be attractive, there are some drawbacks:
- Limited choice: not all companies offer it, and mobility options vary by employer.
- Cash option less advantageous: if you choose a cash payout, you will keep less net than with a company car.
- Less suitable for frequent drivers: if you do a lot of mileage, a classic company car may be more economical.
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It depends on how you use the mobility budget:
- If you spend it fully in pillar 2 (sustainable mobility), then you keep 100% net.
- If you spend part of it in pillar 3 (cash payment), a solidarity contribution of 38.07% is deducted. Suppose you have €3,000 left over in pillar 3 – you will keep around €1,860 net.
