The company car era is ending

The mobility budget is one of the big topics on the table in the Government’s most recent reforms. The obligation to introduce the policy has been postponed for now but the current timeline points to 2027 or 2028, depending on employer size and conditions.

The mobility budget is on the horizon, but rather than viewing it as another legal obligation, employers need to see it for what it truly is: one of the most powerful salary optimisation tools available today. Enabling greater flexibility and freedom in employee benefits without increasing costs. One of the few true win-wins available to employers and employees.

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‍‍What the mobility budget actually is

‍The mobility budget is a federal framework that allows employees to trade their company car, or the right to one, for a yearly budget they can spend on more sustainable mobility choices.
It was introduced to reduce Belgium’s reliance on company cars, limit congestion and emissions, and encourage greener mobility. The idea is to offer a genuine and viable alternative, attractive enough to lure employees away from their company car.

Although it is a complex topic we will walk you through in simple terms what steps you would need to undertake to implement it. ‍

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Step 1: Confirm who is eligible (and why that matters)

‍Before doing anything else, employers need to be very clear about who the mobility budget is meant for.

The mobility budget is not a generic salary optimisation tool. It is a parafiscal regime, meaning both employer and employee benefit from preferential tax and social security treatment. That favourable treatment exists for one reason: the mobility budget is designed as an alternative to a company car.

In practice, this means the mobility budget should only be offered to employees who:

• Currently have a company car, or
• Would realistically be entitled to one under the company’s car policy

Using the mobility budget to optimalise an employee’s salary, who would never qualify for a company car under normal circumstances can carry serious consequences.

The safest approach is therefore:

• Start from your existing car policy
• Clearly document which roles or profiles are car-eligible
• Limit mobility budget access to that group

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‍Step 2: Translate the company car into a mobility budget

Once you know who is eligible, the next step is deciding how much budget each employee receives.

This is where the concept of TCO – Total Cost of Ownership comes in. The term can sound technical and daunting, but the idea is simple: what does this carreally cost us per year?

A realistic TCO calculation typically includes:

• Leasing or financing cost (or depreciation if owned)
• Insurance
• Fuel or charging costs
• Maintenance and repairs
• Tyres
• Road tax and registration
• Other recurring car-related costs

Most employers keep this manageable by:

• Grouping cars into categories
• Assigning a fixed & realistic annual TCO-based budget per category
• Applying this consistently

‍A quick word on legal boundaries

‍Belgian legislation sets minimum and maximum mobility budget thresholds (indexed annually) and limits the budget to a maximum of 20% of the employee’s gross annual salary. Your TCO-based budgets should always be checked against these boundaries.

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Step 3: Understand the idea of the three pillars ‍

At its core, the mobility budget is built around three pillars:

1. Keeping a (more sustainable) company car (usually electric or hybrid)
2. Sustainable mobility and partial reimbursements of housing costs
3. Annual payment of any remaining and used budget (at a reduced tax rate)

This article focuses on how to implement the mobility budget but also check out our article detailing the types of advantages and the benefit for your team.

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Step 4: Decide whether to manage the mobility budget yourself or use an external partner‍

There is no legal obligation to use an external partner. However, in practice, most Belgian companies still choose to work with a social secretariat or specialised mobility provider to reduce administrative load on their internal teams.

Their cost is usually limited and typically deductible from the mobility budget itself, ensuring cost neutrality. Additionally, they offer employee portals and apps that greatly improve the user experience.

Clients of Austin Bright can benefit from guidance and advice when comparing providers, helping them select a solution that fits both their workforce andlong-term HR strategy.

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Step 5: Set clear rules and communicate them early

The smooth adoption by your team can be streamlined by making key decisions early.

Questions such as:

• When can employees switch to a mobility budget?
• If they already have a company car does the leasing need to come to an end prior to being able to switch?
• Does everyone receive the same Pillar options in their budget?
• What happens after promotion or role change?
• What happens with the budget when someone leaves?
• What proof is required for expenses?
• Who answers questions internally?

The good news here is that more often than not, if you choose your external partner well, they can help guide your decision making and simplify the entire process.

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‍Step 6: Get the paperwork right

Before roll out you will need two core elements:

• Mobility Budget Policy: This document defines the framework of the mobility budget within the organisation, setting out who is eligible, how the budget is calculated, which options are allowed, and the internal rules for use. It is essential because it ensures transparency, consistency, and legal compliance, while giving employees a clear reference point for how the system works in practice.

• Contract Addendum: This is an amendment to the employment contract that formally records the employee’s choice to enter the mobility budget and the specific parameters that apply to them. It is required to legally anchor the arrangement, protect both parties, and demonstrate that the mobility budget replaces (or modifies) certain remuneration elements by mutual agreement.

Most employers work with standard templates, often supplied by external partners at minimal cost. The documents will detail the choices available to the employee, who has the right to the budget and clearly indicate the choice the employee had to access the budget.

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‍Step 7: Get employees excited‍

When introduced well, the mobility budget is a powerful tool allowing employees more flexibility and control over their salary package. In a market where gross salary is under ever higher pressure this can be a compelling argument.

For employers, the gains are clear:

• Stronger employer branding
• Better attraction and retention
• Lighter and more controllable car fleet

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‍Takeaway

‍In a labour market where salaries are under constant pressure, employer costs continue to rise and competition for talent is fierce, truly win-win solutions are rare. The mobility budget is one of them: while it requires an initial investment of time and structure, it offers employers a powerful way to optimise remuneration, control costs and give employees genuine flexibility. Those who continue to see it as a compliance exercise risk missing what itreally is, a strategic opportunity to pay smarter, not more.

Don’t miss out!!

Our clients can benefit from free support and guidance in helping them make sensible choices on how to implement a mobility budget successfully!