The legal mobility budget has been in force since 1 April 2019. In a nutshell, it comes down to this. When you, as an employer, decide to implement the mobility budget, your employees have two options.
- They can choose a company car
- or they can trade it in for a mobility budget.
Your employees are free to spend that budget in three pillars, within the spending possibilities you offer as an employer.
Below is a brief explanation of the mobility budget. At first glance, it may seem fairly complicated, but Olympus Mobility will actually completely relieve your burden.
Together with our partners, we provide a convenient mobility app that registers all mobility expenditure. We also provide a simplified report of the payment of the remaining amount.
The legal mobility budget in a few steps
1. TCO (= total cost of ownership) calculations
The TCO of the current company car determines an employee’s mobility budget. This TCO includes the monthly lease or rental price of the company car. It also includes fuel costs in addition to insurance, CO2 solidarity contribution, non-deductible VAT, corporate income tax on non-deductible car costs and more.
2. Pillar 1: environmentally friendly car
Your employee can give up the company car in pillar 1 or opt for an environmentally friendly car. The TCO of the new environmentally friendly car will be lower than the current one. The reason for this is that CO2 emissions are reduced due to lower motorisation or a lower list price. Your employee can then spend the amount remaining in pillar 2 of the mobility budget.
3. Pillar 2: sustainable means of transport and housing costs
Your employee can spend the budget in pillar 2 on various types of sustainable, alternative means of transport, e.g. train, tram, bus, metro, shared cars, bikes and foot bikes.
He/she may also use the mobility budget in pillar 2 to finance housing costs, rent and interest on mortgage loans. The only condition is that his/her home must be within a radius of 5 kilometres of the workplace.
With the Olympus Mobility app your employee can:
- buy tickets in digital format for the train, tram, bus and metro,
- use a Cambio shared car and a shared bike,
- park in the B parking areas at the NMBS stations, etc.
Every month you as an employer receive one invoice for all mobility costs and a detailed report of the expenses. That is very useful as it allows you to recover VAT. The remaining amount in the Olympus Mobility app will be neatly transferred to the next month.
4. Pillar 3: money
On 31 December of each calendar year, we review the balance of the mobility budget. The remaining amount in pillar 3 is then paid out in cash. This is done after deduction of a special employee contribution of 38.07%. It is not possible to transfer the budget to a next year.
Olympus Mobility provides the employer with a report that states the balance to be paid to the employee.
The legal mobility budget worked out in practical terms
We will briefly illustrate the mobility budget with a practical example.
Suppose your employee has a company car at present. From 1 July, he/she opts for the mobility budget. We follow the steps described above and show the amounts in practice.
1. TCO based on the current company car = €1,000 per month
Until 31/12, the employee therefore has a €6,000 mobility budget.
2. Pillar 1
The employee chooses an environmentally friendly car. The new TCO is now only €800 per month. The remaining €200 can be spent by the employee in pillar 2.
3. Pillar 2
Over a period of 6 months (in this case until 31/12), the employee has access to an amount of €1,200 for sustainable mobility and housing costs. In this example, the employee uses €800 of that amount.
4. Pillar 3
A small calculation shows that €400 is left in the mobility budget. The employer therefore pays the following amount to the employee:
- € 400 x 38.07% = € 152.28
- € 400 – €152.28 = € 247.72
Olympus Mobility would be happy to take over these calculations and the management of the mobility budget from you.
Leave the legal mobility budget to Olympus Mobility and our partners
Together, they will unburden your business in the following areas:
- Drawing up policy on the mobility budget
- Preparation and calculation of the TCOs
- Implementation of the mobility budget
- Management and monitoring of employees’ expenses and mobility behaviour
Olympus Mobility provides a convenient mobility app for Pillar 2 expenses, as well as a simplified report for the payment of the remaining amount in Pillar 3.
Would you like more information?
Please contact us. We would be happy to answer your questions. Together we are working towards more sustainable mobility.