The legal mobility budget is a sustainable and fiscally advantageous alternative to the company car.
Employees with (the right to) a company car may trade it in for a generous budget.
You calculate the budget based on the Total Cost of Ownership of the current company car.
Your employees can spend their mobility budget on environmentally friendly mobility options, divided over 3 pillars.
Thanks to its great flexibility, the mobility budget is Belgium’s most advantageous and flexible remuneration model.
The Total Cost of Ownership of the current company car determines your employee’s mobility budget.
This TCO includes, among other things …
In pillar 1, your employee has two choices:
The TCO of a new eco-friendly car is lower than the current one. This is due to reduced CO2 emissions or a lower list price.
Your employee spends the remaining amount on pillar 2 of the mobility budget.
In pillar 2, your employee spends the budget on all kinds of sustainable means of transport.
Think train, tram, bus and shared cars, bikes and steps. A wide range of alternatives to their company car!
There is also the option of spending the budget on housing costs: rent and mortgage loans.
This option is only possible if your employee lives within a 10-kilometre radius of the main workplace or if your employee works at least 50% from home.
On 31 December of each calendar year, we take stock of the mobility budget. At that time, the employee’s remaining amount is paid out in cash.
This is done after deducting a special employee contribution of 38.07%. It is not possible to carry over the budget to a subsequent year.
Olympus Mobility provides you as an employer with a report showing the balance to be paid out to your employee.
No need to calculate anything yourself.
Suppose your employee Bart has an annual budget of €12,000. Each month he receives €1,000.
On the first of July, Bart decides to trade in his company car. Until the end of the year, he has €6,000 at his disposal.
In situation 1, Bart opts for an environmentally friendly company car in pillar 1. The new TCO is only €800 per month.
He is free to spend the remaining €200 on sustainable mobility or housing costs in pillar 2.
If Bart only opts for pillar 2, he will have the full €1,000 per month available for alternative means of transport or housing costs.
Each month, he uses €800 of that amount, leaving €200 each time.
At the end of the year, Bart still has €2,400 available.
After deducting 38.07% special employee contribution on the remaining amount, you as an employer pay out €1,486.32 to Bart in pillar 3.
Determining the legal mobility budget is based on the Total Cost of Ownership. However, calculating the TCO is not a piece of cake.
To clarify the calculation, the Federal Government created two official TCO formulas.
This article sets out the details.
Learn about the new TCO formulas and changes in the legal framework regarding the mobility budget.
Together with expert Thierry Devresse of MMBB, we discuss the essential information.
The legal mobility budget feels like a complex affair for many companies. How does the implementation look like? How beneficial is it for employees?
We spoke to Business & Decision about the roll-out of the legal mobility budget and their experience with this tax advantageous framework.
