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The bill adapting the mobility budget was approved on 10 November 2021. Pending the publication of the law, we will already give you an overview of the main points.
What does the mobility budget involve?
The mobility budget gives the employee the opportunity to exchange his company car for a certain budget. The mobility budget is calculated on the basis of the total cost of the company car, the so-called 'total cost of ownership’. This includes leasing costs, CO² contribution, fuel costs, non-deductible VAT and other non-included costs such as winter tyres and insurance.
Abolition of the 12-month waiting period
The mobility budget is currently only available to employees who actually have a company car or are entitled to one. Only after the employee has had (entitlement to) the use of the company car for at least 12 months can it be exchanged for the mobility budget. The 12-month period does not apply when the employee has just been hired.
This 12-month waiting period will be abolished as from 1 January 2022. This means that an employee who is promoted to a position that entitles him to a company car does not have to use that car for 12 months before he can exchange it for the mobility budget. This also means that an employee who has been driving the company car for three months, for example, does not have to use it for another nine months before he can opt for the mobility budget.
To be eligible for the mobility budget, the employee must still be entitled to the company car on the basis of the company car policy within the company. This condition remains in place.
Berekening van het mobiliteitsbudget
As of 1 January 2022, the calculation of the mobility budget will become clearer. The annual amount of the mobility budget is a minimum of 3,000 EUR and a maximum of one fifth of the total annual gross salary, with an absolute maximum of 16,000 EUR. By Royal Decree, a formula can also be worked out by which the amount of the mobility budget is calculated.
When determining the mobility budget, the employer will also be able to leave out the costs that arise from the professional use of the company car, on condition that the employer reimburses the costs incurred by the employee in connection with his professional travel. This is to prevent the cost from increasing for the employer if an employee who needs his car for his job opts for the mobility budget.
More options for spending the budget
The employee can spend the mobility budget on three pillars.
Pillar 1 - A more environmentally friendly company car
With the mobility budget, the employee can continue to choose a company car, albeit a different and more environmentally friendly model. From 1 January 2026, only fully electric cars will be considered environmentally friendly.
Pillar 2 - Sustainable modes of transport
The employee can spend the balance of the budget on sustainable modes of transport. This pillar offers ample possibilities that are further enhanced by the amendments to the law. From now on, the employer will also be obliged to make at least one offer in this pillar.
For example, the cost of financing (e.g. bicycle loans), storage costs, and cost of non-mandatory equipment that increases safety and visibility are added to the options within Pillar 2.
From now on, public transport season tickets can be issued not only in the name of the employee, but also in the name of family members living under the same roof.
Parking costs connected with the use of public transport will be covered, as will a pedestrian bonus for commuting.
The most noteworthy enhancement relates to housing costs. Living closer to work is seen as a sustainable mobility solution. From now on, not only the rents and interest on loans qualify, but also the principal repayments can be covered by the mobility budget. Furthermore, the distance between home and work to be considered as a sustainable mobility solution is increased from 5 km to 10 km.
All vehicles used under pillar 2, however, should be emission-free from 2026 onwards. This condition applies to all motorised sustainable mobility vehicles, as well as to car sharing solutions, car pooling and car rental services with driver.
Pillar 3 - Cash balance
If, at the end of the year, there is still some budget left, this balance will be paid out to the employee subject to a one-off deduction of a social security contribution of 38.07%.
If you still have questions about the changes to the mobility budget or if you would like to introduce it in your company, HR Legal will be happy to help you. Please feel free to contact us; we will be happy to make time for you.
