The mobility budget is a Belgian legislation that allows companies to offer an eco-friendlier tailor-made mobility budget to either employees with a company car or employees who qualify for one, within a favourable tax regime.
The mobility budget can be used in 3 pillars:
Pillar 1
The employee can choose an eco-friendlier car (a vehicle that emits less CO2, an electric car, etc.). Benefits: the same tax and social treatment as a classic company car for both the employer and the employee.
Pillar 2
With the remaining budget (or the entire budget if no car was chosen), the employee can pay for more sustainable modes of travel.
- soft mobility (e-step, hoverboard, bike, etc.)
- public transport
- organised shared transport
- shared cars, carpooling
- mobility services that combine the modes mentioned above
This budget is exempt from social security contributions and withholding tax. For the employer, it is a fully deductible professional expense.
💡 It is also possible to finance housing costs (rent and monthly interest & principal payments of loans) if the employee lives within a 10 km radius of the usual place of work, or if he/she works from home for most of the time (>50%).
Pillar 3
The budget that hasn't been used is paid out in cash to the employee once a year (31/12). For the employee, this is considered a professional income that is fully exempt from tax, but subject to a personal social security contribution of 38.07%. For the employer, this is a fully deductible professional expense (no social contributions).
💡 For more information, please visit the Mobility & Transport website of the government.