Month: April 2023

1. Cost and time saving

Believe it or not, the legal mobility budget saves costs.

Think for example of parking costs, fuel or the repair of mirrors after an unfortunate accident.

These mobility costs decrease through the use of shared cars, bicycles, the train …

In the Olympus app, you also enjoy advantageous rates.

In addition, it also reduces the number of working hours lost to administration.

Thierry Devresse from My Mobility Budget Butler, expert and partner in the mobility budget, confirms: “A mobility budget requires less work than managing a company car.

The only thing you have to think about is the implementation. But that effort pays off. Afterwards, you will only gain time.”

See how Silverfin implemented the legal mobility budget.

2. Flexibility

The mobility budget provides mobility tailored to the needs of your employees.

They will get to choose out of a long list of means of transport. Bus, train, car sharing, bike sharing, taxi, electric scooters… it can all be done.

This way they are no longer obliged to travel by company car. They choose their own mode of transport.

Thierry continues: “The mobility budget gives your employees a very wide range of mobility options.

All these options respond seamlessly to the needs of your employees based on the time, place and people who may accompany them.”

See how Business & Decision experiences the use of the mobility budget.

3. Sustainable mobility policy

When looking at corporate mobility evolutions, sustainable mobility policy is very present. Take a look at the advantageous legislation for electric company cars, for example.

That is precisely what the legal mobility budget is used for.

Not only with an environmentally friendly car, but also through alternative means of transport. You stimulate the use of public and shared transport or the purchase of an (electric) bicycle.

As a result, the legal mobility budget helps reduce CO2 emissions.

Thierry adds: “The mobility budget gives your company a modern and responsible image.”

Read here everything you need to know about the legal mobility budget in 2023.

4. Increased productivity

We don’t have to tell you: exercise makes you happy. The same is true when your employees spend less time in traffic.

And happy employees? They are more productive.

All the more reason, therefore, to simplify the use of (shared) bicycles and scooters in your company.

Employees who come to work by public transport also benefit from this. They gain productive hours during the day.

They no longer have to focus on traffic and can use their time productively. The train, for example, is the ideal moment to answer e-mails.

5. An asset in the war for talent

For 6 out of 10 potential employees, a sustainable mobility policy is an important factor in their choice of employer.

With that in mind, you can offer mobility in a cafeteria plan, just like countless other companies have done before you.

But if you really want to stand out in the war for talent? Then the mobility budget is for you.

Thierry agrees. “It’s the most advantageous remuneration for employees under Belgian law. That way, you attract talent and retain it.”

Convinced of the legal mobility budget?

Discover how we can help.

Overview

1. What is the legal mobility budget?
2. Who is entitled to the legal mobility budget?
3. How do I calculate the legal mobility budget?
4. How do I implement the legal mobility budget?
5. Where do employees spend their budgets on in Pillar 2?
6. How do I keep a record of all my employees’ budgets?

What is the legal mobility budget?

The legal mobility budget is a sustainable and tax-advantageous alternative to the company car. With that budget, employees exchange their company cars for an environmentally friendly car and other alternative forms of transport.

Specifically, the legal mobility budget consists of three pillars:

1. Environmentally friendly company cars: cars with a maximum CO2 emission of 95 g/km (this regulation will change in 2026 to cars without CO2 emissions).
2. Sustainable mobility and housing costs: public or shared transport, purchase or maintenance of a bicycle or scooter, rental or loan …
3. Cash: at the end of the year, your employee will be paid out the remaining budget, after a reduction of 38.07% special employee contribution.

Who is entitled to the legal mobility budget?

The answer is twofold:

• Employees who are already driving a company car today.
• Employees with a position that entitles them to a company car, but don’t (yet) use it.

We also make two remarks here:

• The legal mobility budget can only be implemented when you have had a mobility policy for three years and when at least one employee has a company car on which he or she pays VAA.
• When you currently offer salary benefits in exchange for the company car, your employee cannot exchange these benefits for the mobility budget.

How do I calculate the legal mobility budget?

In short? Based on the Total Cost of Ownership (TCO). In other words: the total annual gross cost of the company car.

It includes costs related to the car, such as:

• The lease or rental price of the car
• Fuel Insurance
• CO2 solidarity contribution
• Non-deductible VAT
• …

For employees who are eligible for the mobility budget, but do not have a company car, it is different. They first choose a fictitious company car. Based on that you determine their TCO.

Currently there is no official calculator to calculate the mobility budget, but it is likely that this year the federal government will release a TCO Mobility Budget Calculator.

While we wait, we appeal to some concrete guidelines. The budget amounts to …

• Minimum €3,000
• Maximum one-fifth of the gross annual salary of the employee or €16,000 per calendar year

Need a practical example? Check out how Business & Decision tackled it.

How do I implement the legal mobility budget?

We spoke to an expert in the field, Thierry Devresse of My Mobility Budget Butler, who broke down the implementation into five steps:

1. Update your mobility policy
2. Consider teleworking
3. Draft a policy with an eye to the statutory mobility budget
4. Establish procedures for the statutory mobility budget
5. Communicate thoroughly with your employees

He emphasized not tackling this process alone. You will lose a lot of time trying to figure out all the legal regulations.

Social secretariats help with some of the above items, but not all. For a complete unburdening, it is best to involve a consultant such as MMBB.

See how Silverfin tackled this in practice.

Where do employees spend their budgets on in Pillar 2?

We briefly mentioned it earlier. Pillar 2 consists of sustainable means of transport and housing costs. In more detail, it covers …

• Tickets & subscriptions for public transport
• Tickets & subscriptions for shared transport
• International train tickets
• Purchase of an (electric) bike or scooter
• Maintenance or equipment for your (electric) bike or scooter
• Rental costs or mortgage loans of employees who live within a radius of 10 kilometers around the workplace or more than 50% work from home
• Family members of the employee may also use the budget for the above

As an employer, you are not obliged to enter the full list. It’s best to make sure your offer meets the needs of your employees.

How do I keep a record of all my employees’ budgets?

Keeping track of expenses, remaining budgets, reimbursements… No small feat. With a digital tool like Olympus Mobility, you can keep control.

In the Olympus management portal…

• You can easily assign budgets to your employees
• Get a monthly overview of mobility expenses
• No longer process reimbursements for other external purchases in Pillar 2
• Download the Pillar 3 report at the end of the year and send it easily to your social secretariat or payroll responsible

Furthermore, your employees also get a real-time overview of their remaining budget in the Olympus app.

Want to implement the legal mobility budget?