What is the mobility budget?

Do you have, or are you entitled to, a company car? If all the conditions are met, you can choose to exchange that car — or your entitlement to one — for an annual budget. That budget can then be spent on mobility solutions that better match the way you get around today: a lease bike, public transport, a smaller car, or a combination of different solutions.

Thanks to the announced changes, the mobility budget will become available to more employees from 2027 onwards.

Although the changes have not yet been definitively voted into law, now is the moment for employers to look ahead. For employees, the mobility budget opens the door to greater freedom of choice. And for anyone who wants to get around more intelligently, more sustainably, or more flexibly, it can become a particularly interesting part of their pay package.

Mobility budget: meaning

The mobility budget is an alternative to the company car. So you don't get an extra bonus on top of your existing pay package, but a budget instead. Instead of one fixed mobility solution, you get more freedom to make your own choices. Within the options your employer offers, you decide how to spend your budget — always within the legal framework. That budget is based on the total employer cost of the company car you are entitled to or that you currently have. In other words, the amount your employer would normally spend on your car. This cost is often referred to as the TCO, or Total Cost of Ownership. For many employees, this means more flexibility and more opportunities to choose sustainable mobility. Maybe you no longer need a large company car because you regularly work from home. Maybe you'd rather commute by speed pedelec. Or maybe you want to combine your car with a train pass or other sustainable mobility solutions. The mobility budget makes these choices possible — provided the system is implemented and managed correctly.

How does the mobility budget work?

The way it works is actually quite simple. Your employer allocates an annual mobility budget. This budget is also recorded and tracked through an internal "mobility account." You can spend the budget within three legally defined pillars. For example, you can:

• choose an emission-free, environmentally friendly car;
• take a lease bike;
• pay for a train pass;
• use shared mobility;
• finance certain housing costs;
• or combine several options.

The big advantage? Many expenses within the mobility budget are particularly favorable from a social security and tax perspective. Employees who regularly cycle or partly work from home in particular often discover that the mobility budget offers more possibilities than a classic company car. For employers, the system at the same time offers a way to make the pay package more modern and attractive, without the company car necessarily remaining the only mobility solution. Want to know exactly how it all works? Then also read our article on how the mobility budget works.

The 3 pillars of the mobility budget

The mobility budget consists of three pillars. Each pillar has its own purpose and its own tax and social security treatment.

Pillar 1: an environmentally friendly company car

Do you still need a car for your job? Then within Pillar 1 you can opt for an environmentally friendly company car, provided your employer offers this option and the car meets the legal requirements. From 1 January 2026, only company cars with zero CO2 emissions can be chosen. The cost of that car is charged to your mobility budget. Any remaining part of the budget can then still be used within Pillar 2, or, if there is still a balance left at the end of the year, within Pillar 3. For employees who regularly visit clients, cover a lot of kilometers, or functionally need a car, this remains an interesting option. But even then, the mobility budget can create room to combine the car with other mobility solutions.

Pillar 2: sustainable means of transport and certain housing costs

For many employees, Pillar 2 is the most interesting pillar. It is entirely focused on sustainable mobility solutions and, under specific conditions, certain housing costs.

1. Sustainable commuting and private transport

• Public transport: Subscriptions (NMBS, De Lijn, MIVB, TEC) and individual tickets for you and your household members.
• Bikes and scooters: Purchase, maintenance, and accessories for (electric) bikes, speed pedelecs, and scooters.
• Bike leasing: Paying the monthly lease price for a bike.

2. Shared mobility

• Shared cars and shared bikes: Costs for car-sharing, bike-sharing, or scooter-sharing.
• Rental cars: Short-term rental (maximum 30 consecutive days).
• Taxis and ride services: Payment for taxis, collective transport, or specific ride services.

3. Housing costs (commute-related) You can also use your budget to finance rent or the capital repayments and interest on a mortgage loan. You can benefit from this if you live within a 10 km radius of your fixed workplace, or if you structurally work from home enough (at least 50%). Within Pillar 2, you can also lease a quality electric bike or speed pedelec, including maintenance and insurance, without this having the same tax impact as a classic salary bonus.

Pillar 3: what happens to the remaining budget?

Is there still budget left at the end of the year that wasn't used in Pillar 1 or Pillar 2? Then the remaining balance can be paid out. However, this payout is not an ordinary net bonus. A special employee social security contribution of 38.07% is due on the balance. That's why it pays to think carefully in advance about the best mobility mix and to make maximum use of the budget within Pillar 2. Those who use their budget wisely generally get more value from sustainable mobility solutions than from a simple cash payout under Pillar 3.

Mobility budget mandatory from 2027

Today, employers still decide for themselves whether they want to offer the mobility budget to employees who have, or are entitled to, a company car. If the government carries out its plans, from 2027 employers with more than 50 employees will be required to offer a mobility budget to employees who qualify for it. From 2028, this obligation will be extended to employers with more than 15 employees. This means that in the coming years, many more people will gain access to a system that lets them organize their mobility more flexibly. However, the precise arrangements still need to be definitively enshrined in law. And for companies, it offers an additional way to encourage sustainable mobility without increasing total payroll costs.

Conditions for the mobility budget

Not everyone can simply opt into the mobility budget. To qualify, your employer must already offer company cars, and according to company policy you must be entitled to a company car. As an employee, you remain free to decide whether or not to opt into the mobility budget. In addition, specific conditions apply to certain expenses within the budget. For example, housing costs can only be financed through the mobility budget under certain conditions. Not sure whether you qualify? It's best to review the possibilities together with your employer or HR department.

How much is the mobility budget?

The budget is calculated based on the total cost of the company car you have or are entitled to. This is also known as the Total Cost of Ownership, or TCO. This includes, among other things:

• Leasing or financing costs;
• fuel or charging costs;
• insurance;
• maintenance;
• taxes;
• CO2 contributions. The higher the cost of the original car, the larger the mobility budget generally is.

Simple calculation example

Suppose your company car costs your employer €10,000 per year. Do you decide to exchange that car for a mobility budget? Then you have an annual budget of roughly €10,000. That budget can, provided all conditions are met, be spent on, for example:

• an electric lease bike;
• a train pass;
• shared mobility;
• certain housing costs. This lets you create a mobility mix that better matches your daily travel needs.

Is the mobility budget tax-advantageous?

Yes, but the tax advantage differs per pillar. An environmentally friendly company car follows the tax and social security rules that apply to company cars. Expenses within Pillar 2 are, in principle, fully exempt from taxes and social security contributions. The remaining balance via Pillar 3 is subject to a special employee social security contribution of 38.07%, but is tax-exempt. That's why it's important not to view the mobility budget as one general pot of money, but as a budget with different tax rules depending on how it's spent.

What are the benefits of the mobility budget for employees?

• More freedom of choice.
• Access to sustainable mobility solutions.
• The option to combine a lease bike with other means of transport.
• Potentially more favorable tax and social security treatment.
• Mobility that you can better tailor to your daily reality.
• More flexibility when you regularly work from home.

The mobility budget makes mobility more personal. Not everyone needs the same car. Not everyone gets around in the same way. And that's exactly where the strength of the system lies.

What are the benefits of the mobility budget for employers?

The mobility budget can also be a strong asset for employers.

• An attractive, more flexible pay package.
• A stronger sustainability policy.
• A strong element in employer branding.
• More freedom of choice for employees.
• Less dependence on classic company cars.
• A cost-neutral system.

Are there also points of attention?

Like any system, the mobility budget also requires some explanation and guidance. For employees, the various rules and possibilities can seem a bit overwhelming at first. For employers, implementation requires a clear mobility policy and good communication with staff. The system is not automatically free of cost or administratively neutral. Accurate calculation, a clear policy, and good follow-up remain necessary. But once the system is properly set up, many organizations discover that the benefits far outweigh the extra administration, and that the mobility budget is a particularly powerful tool within a forward-looking HR and mobility policy.

Ready for tomorrow's mobility?

The mobility budget gives employees more freedom to align their mobility with their life today. For one person, that means a smaller emission-free car combined with a train pass. For another, it's a speed pedelec that gets them to work every day without traffic jams. Someone else uses the budget for a combination of bike leasing, public transport, and housing costs. One thing is clear: with the expansion of the mobility budget from 2027, sustainable mobility will become more personal, more sustainable, and more flexible — and increasingly within reach for more and more employees.

More on this topic: Can you offer bike leasing alongside the mobility budget?