Mobility budget – Agreement within the Federal Government

Written by Nicolas de Limbourg 22 March 2018

Earlier this week, the anticipated legislation regarding the mobility allowance (“cash for car”) was approved by Parliament. Following the advice and remarks from several official institutions, the government also started working on the introduction of a mobility budget.

It is anticipated that when the mobility budget, will also become legislation, it will co-exist with the recently introduced mobility allowance.There is a link between both systems, as they are both the practical implementation of measures aiming to reduce the number of cars driving on the Belgian roads (especially for commuting reasons). However, where the mobility allowance only results in a “cash payment” for employees in exchange for handing in there company car, the purpose of the announced mobility budget will be to offer employees alternative means of commuting in combination with a company car.

The amount of the mobility budget will be based on the “total cost of ownership” (TCO) of the company car for the employer. This will be the total cost for the employer, on a yearly basis, which the employer bears for providing a company car to an employee, including the cost for fuel, insurances, taxes, maintenance,… .

The general conditions to implement a mobility budget are basically the same as for the implementation of a mobility allowance. The employer will have the free choice to implement the mobility-budget in the company.

Also the employees will have the free choice to opt for the application of a mobility budget.

In case the conditions are met and the employee chooses to go for the mobility budget, he/she can spend the budget via the following steps:

Step 1: change the company car into a smaller, more eco-friendly model, within the existing car policy.

Step 2: the remaining budget can be used for alternative (and more sustainable) means of commuting.

Step 3: in case there is still some budget available, the remaining amount is paid out in cash.