How is your mobility budget calculated?

What exactly is the mobility budget?

The mobility budget is a tax-efficient scheme that allows you to exchange your company car for an annual budget. This amount isn’t simply chosen at random; it is based on the Total Cost of Ownership (TCO) of the company car you are entitled to (based on your job category) or currently have.

The TCO: the driving force behind your mobility budget

Your employer looks at the full annual cost of your company car, not just the lease price, but also costs such as fuel, maintenance, insurance and taxes. This total cost is referred to as the TCO ( Total Cost of Ownership ).

When thinking about a company car, many people only consider the monthly lease price. However, the actual cost is often considerably higher. The TCO includes, among other things:

• fuel or electricity;
• maintenance and repairs;
• tyres;
• insurance;
• road tax;
• the CO₂ solidarity contribution;
• non-recoverable VAT;
• non-deductible expenses for tax purposes;
• parking and car wash costs.

💡 Not every cost is automatically included. It must actually be borne by the employer and fall within the company car policy. If you, as an employee, pay a personal contribution for private use of the vehicle, this is deducted from the TCO.

A concrete example

Suppose your company car costs your employer €9,600 per year. If you exchange it for a mobility budget, you will in principle receive that same amount: €9,600 per year to spend freely within the options offered by your employer.

This amount is not simply paid out in cash. You can use it for, among other things:

• leasing or purchasing an electric bike or speed pedelec;
• a train subscription;
• shared mobility (shared cars, bikes, scooters, etc.).

💡 If there is still a balance left at the end of the year, this amount will be paid out, subject to the deduction of a special employee contribution of 38.07% .

Is there a minimum and maximum?

Yes. The mobility budget must remain within legally defined, indexed limits: an annual minimum and maximum. In addition, the budget may never exceed one fifth of your gross salary .

What if you prefer to combine a smaller car with a bike?

Many employees immediately associate the mobility budget with “no more car”. But that doesn’t have to be the case. You can perfectly choose:

• a smaller, zero-emission car within pillar 1 and a train subscription;
• or an electric bike or speed pedelec as your main means of commuting to work.

Do you regularly work from home or live within cycling distance of your workplace? In that case, a (leased) bike can be one of the most attractive options within the mobility budget. Often, there is even room left in the budget for other forms of mobility.

Are you already leasing a bike outside the mobility budget?

Do you already have a leased bike through, for example, a cafeteria plan or salary exchange, independently of your company car? You don’t necessarily have to give this up when you switch to a mobility budget.

If you had already been leasing that bike for at least 3 months before switching to the mobility budget, you can simply continue this arrangement. Your tax exemption remains in place, and once your current lease contract ends, you can even choose a new bike independently of your mobility budget.

If you had been leasing the bike for less than 3 months when you switched to the mobility budget, the “no double benefit” principle applies: you choose the bike within your mobility budget (pillar 2), or you keep the separate scheme. You cannot combine both.

How do you get your expenses reimbursed?

Once your budget has been allocated, you naturally want to know how your expenses are actually reimbursed. This depends on the platform your employer uses , but it usually works in one of two ways:

• Directly via an app or payment card: for most expenses — such as a train subscription, shared bike or charging station — you pay directly using your mobility budget app or card. The amount is automatically deducted from your remaining budget, without you having to submit anything yourself.
• Submitting an expense claim: you pay with your own money first and are reimbursed afterwards based on your receipt or invoice.

How often you receive these reimbursements is determined by your employer: some companies process them monthly, while others do so only once a year. So be sure to check how it works in your company.

Curious about what your budget could mean for a bike?

At Cyclobility, you’ll find a varied range of high-quality bikes that you can try out and choose from. Within the mobility budget, you can lease a bike if your employer works with us, or you can purchase the bike directly at one of our stores.