Thanks to the mobility budget, employers can offer their employees the opportunity to swap their (right to a) company car for a mobility budget that can be used for alternative transport options under various pillars. The introduction of a mobility budget is voluntary on the part of the employer. However, certain conditions must be met before a mobility budget can be introduced.
Employees who switch to the mobility budget system give up their company car (if they have one) and the corresponding benefits (fuel card, insurance, maintenance, etc.) and receive a mobility budget in return.
This mobility budget corresponds to the gross annual cost to the employer of the returned company car (or the company car for which the employee was eligible), including tax and social charges and related costs (financing costs / annual amortisation of 20%, fuel costs, insurance, solidarity contribution, etc.). Two calculation methods (flat-rate/actual basis) are provided for in the regulations.
The employee can then use this mobility budget in three pillars:
The first pillar allows them to opt for an eco-friendly company car. This could be a fully electric car, or a company car with CO2 emissions of no more than 95g/km. The benefit relating to the private use of a “first pillar” company car is not subject to ordinary social security contributions. Only a solidarity contribution applies to the private use of company cars, which is calculated on the basis of the CO2 emission rate of the company car.
Alternative and sustainable means of transport can be financed under the second pillar (soft mobility, public transport, car-sharing solutions, rental car without a driver (max. 30 days), accommodation costs close to the workplace, company bike and bike allowance, pedestrian allowance, etc.). The portion of the mobility budget allocated to the second pillar is fully exempt from social security contributions.
The third pillar provides for payment of the unused balance of the mobility budget at the end of each year. The amount paid is not subject to regular social security contributions but is subject to a special social security contribution of 38.07% payable by the employee.
Worker Taxations Description
Thanks to the mobility budget, employers can offer their employees the opportunity to swap their (right to a) company car for a mobility budget that can be used for alternative transport options under various pillars. The introduction of a mobility budget is voluntary on the part of the employer. However, certain conditions must be met before a mobility budget can be introduced.
Employees who switch to the mobility budget system give up their company car (if they have one) and the corresponding benefits (fuel card, insurance, maintenance, etc.) and receive a mobility budget in return.
This mobility budget corresponds to the gross annual cost to the employer of the returned company car (or the company car for which the employee was eligible), including tax and social charges and related costs (financing costs / annual amortisation of 20%, fuel costs, insurance, solidarity contribution, etc.). Two calculation methods (flat-rate/actual basis) are provided for in the regulations.
The employee can then use this mobility budget in three pillars:
The first pillar allows them to opt for an eco-friendly company car. This could be a fully electric car, or a company car with CO2 emissions of no more than 95g/km. The benefit relating to the private use of a company car is assessed on a flat-rate basis. It is determined by applying a CO2 percentage to 6/7 of the vehicle's catalogue value, but may not be less than EUR 820 per year (amount to be indexed; EUR 1,650 for the 2025 income year).
Alternative and sustainable means of transport can be financed under the second pillar (soft mobility, public transport, car-sharing solutions, rental car without a driver (max. 30 days), accommodation costs close to the workplace, company bike and bike allowance, pedestrian allowance, etc.). The portion of the mobility budget allocated to the second pillar is tax-exempt for the employee.
The third pillar provides for payment of the unused balance of the mobility budget at the end of each year. The amount paid is fully tax-exempt for the employee.
Employer Deductibility Description
Thanks to the mobility budget, employers can offer their employees the opportunity to swap their (right to a) company car for a mobility budget that can be used for alternative transport options under various pillars. The introduction of a mobility budget is voluntary on the part of the employer. However, certain conditions must be met before a mobility budget can be introduced.
Employees who switch to the mobility budget system give up their company car (if they have one) and the corresponding benefits (fuel card, insurance, maintenance, etc.) and receive a mobility budget in return.
This mobility budget corresponds to the gross annual cost to the employer of the returned company car (or the company car for which the employee was eligible), including tax and social charges and related costs (financing costs / annual amortisation of 20%, fuel costs, insurance, solidarity contribution, etc.). Two calculation methods (flat-rate/actual basis) are provided for in the regulations.
The employee can then use this mobility budget in three pillars:
The first pillar allows them to opt for an eco-friendly company car. This could be a fully electric car, or a company car with CO2 emissions of no more than 95g/km. The deduction of expenses relating to the use of the company car is limited to a percentage that varies according to the vehicle's CO2 emissions.
Alternative and sustainable means of transport can be financed under the second pillar (soft mobility, public transport, car-sharing solutions, rental car without a driver (max. 30 days), accommodation costs close to the workplace, company bike and bike allowance, pedestrian allowance, etc.). The portion of the mobility budget spent on the second pillar is fully deductible for the employer.
The third pillar provides for payment of the unused balance of the mobility budget at the end of each year. The amount paid is fully tax-deductible for the employer.
