Spending your mobility budget on rent or your mortgage: how does it work?

Are you about to trade in your company car for the mobility budget? Considering the switch? Then it’s important to understand what you can actually spend that budget on. In this blog, you’ll discover how to use it for your rent or mortgage, why it’s financially attractive, and what alternatives are available.

The most popular option within the mobility budget

Around 70% of employees who receive a mobility budget use it to pay their rent or mortgage. At Olympus Mobility, we see that the majority of budgets are spent on housing. Some employees use their full mobility budget, while others only use part of it.

And the popularity makes sense. Rent and mortgage payments fall under pillar 2 of the mobility budget, which means: gross equals net. The amount you receive from your employer can be spent in full, without any tax or social security contributions.

If you receive €600 per month in mobility budget, you can spend the full €600 on your rent or mortgage. And let’s be honest, an extra €600 net per month is not something you ignore.

But this option is more than just an attractive financial benefit. The federal government deliberately included housing costs within the mobility budget framework. By allowing employees who live close to work or work remotely to use their budget this way, traffic congestion is reduced. People are more likely to cycle or work from home, which means fewer cars on the road. The result: fewer traffic jams, lower CO₂ emissions, and a greener environment.

Who can use the mobility budget for housing?

First, your employer must decide whether rent or mortgage payments can be financed through the mobility budget. This is defined in your company’s mobility or mobility budget policy.

If your employer offers this option, you must meet at least one of the following criteria:

• You live less than 10 kilometres from your main workplace.
• You work from home at least 50% of the time.

What if I don’t want to spend my mobility budget on rent or my mortgage?

If you do not use your mobility budget in pillar 1 for a (more affordable) electric company car, pillar 2 still offers many other possibilities. This flexibility is one of the key strengths of the mobility budget.

Besides housing, you can spend your budget on:

• Flexible mobility: public and shared transport within the European Economic Area (EEA)
• Taxis and rental cars
• Bicycle accessories that improve visibility
• Purchase and maintenance of a (second-hand) bicycle
• And more

Your family can also benefit from your mobility budget. You can finance full train journeys within the EEA, purchase subscriptions, or buy bicycles and other forms of soft mobility for yourself and your family members.

Parking costs are also eligible, as long as they are related to your commute. For example, you can pay for B-Parking when taking the train to work.

Thanks to the Olympus app, you have one single access point to manage your rent or mortgage payments and purchase tickets for any mobility service. It is your one-stop mobility shop for using your mobility budget.

What happens if there is remaining budget at the end of the year?

A mobility budget is granted for one calendar year. Some employees receive it monthly, others receive the full amount at once. In both cases, it must be used within that same year.

At the end of the calendar year, your budget is reset and you start again with a new, possibly indexed amount. If there is a remaining balance, your employer will pay it out together with your salary.

This is pillar 3 of the mobility budget. Unlike pillar 2, where gross equals net, pillar 3 is subject to a special employee contribution of 38.07%. This means you will always lose a portion of the remaining balance. That is why it is generally recommended to use your mobility budget within pillar 2, where you get the greatest benefit.