The legal mobility budget: what you need to know about the three pillars

Pillar 1 – Environmentally Friendly Company Car

If your employee has a company car or is entitled to one, he or she can exchange it for an environmentally friendly alternative with the legal mobility budget. Your employee can opt for …

• An electric car.
• A car with CO2 emissions lower than 95 g/km. After January 1, 2026, only cars without CO2 emissions will qualify.

The same tax rules apply as for a traditional company car.

 

Are you required to offer pillar 1 as an employer?

No, pillar 1 of the legal or federal mobility budget is not mandatory. If you do offer this option, employees get to decide whether they want to use it or not. They can also completely give up their company car. In that case, they use their entire budget in pillars 2 and 3.

 

Want to know everything about the mobility budget?

 Pillar 2 – Sustainable Mobility and Housing

Pillar 2 can best be described in two words: complete freedom.

• The freedom as a company to easily offer numerous alternative options tailored to your employees.
• The freedom as an employee to travel whenever and however they want.

With the legal mobility budget, employees can travel within the entire European Economic Area. This includes all EU countries plus Liechtenstein, Norway, and Iceland. The UK and Switzerland are excluded from this list. Their next vacation will be a sustainable one!

 

Are you required to offer pillar 2 as an employer?

As a company, you must offer at least one alternative option within pillar 2, but you decide whether to introduce additional options and which ones these are.

For your company, this is also a fully deductible business expense. Unlike pillar 1, this pillar is completely free from social security contributions and payroll tax.

 

Option 1. Public Transport

This includes:

• Train (including high-speed trains)
• Tram
• Bus (including water and intercity buses)
• Metro

Your employees may use the mobility budget for purchasing tickets and season tickets for themselves as well as their family members.

Airline tickets are not eligible.

 

Can you buy a parking subscription with your legal mobility budget?

Yes, as long as this subscription is related to a transportation subscription.

Think of an employee who commutes by train but needs to park their car near the station. In that case, they may reimburse the cost of their 4411 or B-Parking subscription with their legal mobility budget. They use the parking subscription therefore in relation to their commute by train.

 

Option 2. Shared Transport

This includes:

• Carpooling
• Shared cars, scooters, bicycles, and steps
• The office bus
• Taxis
• Rental cars (maximum of 30 calendar days per year)

These mobility options can belong to either a fleet or individuals, regardless of whether the transport type is purchased, leased or rented.

 

Option 3. Soft Mobility

Soft mobility involves the purchase, rental, leasing, financing and maintenance of:

• (Electric) vehicles with a maximum speed of 45 km/h: bicycles, steps, monowheels, hoverboards.
• Electric motorcycles, three-wheelers and four-wheelers.
• Safety equipment or bicycle accessories that protect your employees and increase visibility.

 

Option 4. Housing: Rent and Loan

This is by far the most popular option. About 70% of employees spend their budget on housing costs. It is also the most sustainable choice. That’s because working from home means no commuting. Therefore housing is clearly one of the biggest advantages of the legal mobility budget.

Despite its clear added value, this option comes with a condition. Spending the budget on rent or loan is only possible for employees who live within a radius of 10 km from their main workplace or work from home at least 50% of the time.

 

Option 5. Bicycle Allowance

For commuting, you as an employer can reimburse cycled kilometers with the legal mobility budget.

Did your employee receive a bicycle allowance 3 months before joining? Then you may optionally continue to do so on top of their legal mobility budget.

To ensure your policy is in order, definitely consult an expert. Business & Decision collaborated with partner Thierry Devresse from My Mobility Budget Butler. This way, you are guaranteed to meet all legal requirements.

 

This is how Business & Decision implemented the legal mobility budget

 Pillar 3 – Cash

Does your employee have a remaining budget at the end of the year? Then he or she will receive it paid out to their bank account, completely tax-free. However, the amount is subject to a unique social security contribution of 38.07%.

Your employee receives the remaining amount once per year, together with their January salary. For example, if your employee has €100 left in December 2024, they will receive €61.93 in January 2025.

 

Are you required to offer pillar 3 as an employer?

Pillar 3 is always paid out to your employees. For the company, this is also a fully deductible business expense.

 Convinced of the legal mobility budget?