What is the mobility budget?
The mobility budget is a tool designed for employers to encourage employees to change their mobility habits. It allows employees who, given their function, have (a right to) a company car, to opt for a mobility budget instead of their (right to a) company car. The amount of this mobility budget is based on the TCO of their company car, but this amount is limited to a minimum of 3,164 euros and a maximum of 16,875 euros per year, in addition to a ceiling of 20% of the gross annual salary.
The mobility budget can be used in three pillars, each with a different tax and social security treatment.
Pillar 1: the mobility budget can be used to finance an environmentally friendly company car. As of 2026, this car must have zero-carbon emission.
Tax treatment: the company car under pillar 1 is treated in the same way as a “normal” company car from a tax and social security point of view.
Pillar 2: the mobility budget can be used for environmentally friendly modes of transport, for both private and business travel. For example, company bikes, public transport, carpooling, car rental for a maximum of 30 days per year, electric scooters, but also for the payment of rent or mortgages (including interests) if the employees live within a 10 km radius of their usual workplace. If a person works mostly from home during a given month, then home is the usual place of work for that month.
Tax treatment: second pillar benefits are fully exempt from social security contributions. Their costs are fully deductible from corporate income taxes.
Pillar 3: the balance of the mobility budget (if any) is paid once a year after deduction of a special social security contribution of 38.07%, but it is exempt from taxes.
Tax treatment: the balance paid is fully deductible from corporate income taxes.