How does the federal mobility budget work?

Ready or not, the federal mobility budget is coming – and the deadline is closer than you think.

Starting January 1st, 2026, every Belgian employer that offers at least one company car will also be required to offer the federal mobility budget. But what does that actually mean? What are the tax rules? And how do you ensure a smooth implementation?

In this blog, you’ll find a clear, concise overview of:

• What the federal mobility budget is.
• How the three pillars work.
• Key tax and social security rules.
• How to implement or make use of the budget.
• The actual benefits for both employers and employees.

Whether you’re drafting a mobility policy or curious about how to use your own budget: this is your go-to guide.

What Is the Federal Mobility Budget?

You might know the federal mobility budget as one of the following:

• A tax-efficient alternative to the company car.
• A flexible way to give employees freedom in how they commute.
• A smart tool for covering housing expenses.

From 2026 onwards, any company offering at least one company car will also be required to offer the federal mobility budget. Employees eligible for a car can choose whether or not to use the budget.

The amount is calculated based on the Total Cost of Ownership (TCO) of the company car and can be spent across three pillars:

1. An eco-friendly company car.
2. Sustainable mobility and housing options.
3. A cash payout of any remaining amount.

For employers

Implementing the Federal Mobility Budget

1. Update your mobility policy based on your employees’ needs, and include a clear framework for remote work. An internal survey will provide you with valuable insights quickly.
2. Consult an expert to align those needs with the legal framework. With just one to three days of consulting, you’ll be well on your way.
3. Communicate the available options to your employees. You’ll see the best results when everyone understands the benefits.
4. Simplify the management of the mobility budget with a mobility platform. The Olympus platform helps you stay in control while allowing your employees to get the most out of their budget.
5. Monitor and evaluate the employee experience. Your people will appreciate a policy that adapts flexibly and efficiently based on their feedback.

(Para)fiscal treatment per pillar

1. Pillar 1 – An eco-friendly company car: follows the same tax and social security rules as a traditional company car.
2. Pillar 2 – Sustainable transport and housing: is exempt from social security contributions and payroll withholding tax. It is fully deductible as a business expense.
3. Pillar 3 – Payout of the remaining amount: is also fully deductible for your company. For the employee, it is subject to a special social security contribution of 38.07%.

For employees

What can they use their budget for?

Through the Olympus app, employees get access to over 35 sustainable mobility options within Pillar 2. They can also request reimbursement for external purchases like bikes or helmets. Among other things, they can:

• Buy train, tram, bus, and metro tickets
• Book rental cars and taxis using their budget
• Get reimbursed for bike maintenance

They can even create accounts for family members in the Olympus app, since the mobility budget can be used by the whole household. That includes international train tickets for the summer holidays or a kid’s bike from Decathlon – all managed through a single app.

Depending on your company’s policy, employees may also use the mobility budget to cover rent or mortgage payments – if they live within 10 km of the workplace or work from home at least 50% of the time. In that case, their home counts as their primary workplace. And yes, they can arrange this easily in the Olympus app too.

A Major Tax Advantage

One of the biggest benefits of the mobility budget? Pillar 2 is completely tax-free for the employee. That means they can spend the full amount – no deductions. Gross equals net. If they don’t take a company car under Pillar 1, the full budget becomes available for flexible, tax-free use under Pillar 2.

In Summary

The federal mobility budget offers flexibility, simplicity, and freedom of choice – all strong assets in today’s job market.

With the right partner, implementation becomes easy. Olympus Mobility is the most complete mobility platform on the Belgian market. You digitise your policy, and your employees gain full control over how they move.