Mobility budget company cars: 100% electric from 2026

The rules governing the use of a company car within the federal mobility budget in Belgium have changed. Employees entitled to a company car were still able to allocate their mobility budget to Pillar 1 for an environmentally friendly vehicle, but the conditions became stricter. From 2026 onwards, only zero-emission electric vehicles are permitted under Pillar 1.

Important to note: the obligation for employers to offer the federal mobility budget did not yet apply at the start of 2026. Depending on company size, this obligation must be introduced by 1 January 2027 or 1 January 2028. However, the changes affecting Pillar 1 already had an immediate impact on new vehicle choices as of 2026.

What is Pillar 1 of the mobility budget?

The mobility budget is a monthly or annual budget that employees may receive as an alternative to a traditional company car. This budget can be allocated across three pillars. Pillar 1 is intended for the financing of an environmentally friendly company car.

From 2026 onwards, Pillar 1 became explicitly linked to zero-emission mobility. As a result, both employees and employers are required to make clear and deliberate choices when placing new orders or entering into new lease agreements.

Zero-emission vehicles became mandatory from 2026

From 1 January 2026, only fully electric vehicles can be selected under Pillar 1. Plug-in hybrids and other vehicles with (low) CO₂ emissions are no longer eligible.

This measure formed part of the federal policy aimed at drastically reducing CO₂ emissions from company cars and accelerating the transition to electric mobility.

What about existing lease vehicles?

Employees who were already driving a non-fully electric company car are not required to replace it on 1 January 2026.

• Lease contracts or purchase orders concluded before 2026 remained valid until the end of their term.
• The zero-emission requirement applied only to new vehicles or new lease contracts entered into from 1 January 2026 onwards.

This approach gave both employees and employers sufficient breathing room to plan a gradual and structured transition to fully electric vehicles.

Practical implications for employees

For employees, this meant that any new vehicle choice under Pillar 1 from 2026 onwards automatically leads to a fully electric car.

Within the federal mobility budget, and depending on the employer’s policy, costs such as insurance, maintenance and electricity could also be covered. Any remaining budget could, after using the other pillars, be paid out in cash via Pillar 3, subject to a special social contribution of 38.07%.

The core message remained clear: choosing a car under Pillar 1 from 2026 means choosing 100% electric.

Practical implications for employers

Although the federal mobility budget is not yet mandatory at the start of 2026, employers are advised to prepare in good time:

• Ensure an appropriate offering of fully electric vehicles.
• Align company car policies with the updated regulations.
• Inform HR and finance teams about the fiscal and social implications.
• Communicate clearly to employees about what had changed — and what had not.

For existing contracts, there is no replacement obligation, allowing for a phased and manageable transition.

What about Pillar 2?

In addition to Pillar 1, employees could also use their federal mobility budget for flexible alternatives under Pillar 2 or opt for a cash payout via Pillar 3. Here too, the rules were further tightened from 2026 onwards. However, these changes were separate from the choice of a company car under Pillar 1 and did not affect existing lease vehicles.

Why this change?

With this measure, the Belgian government aimed to accelerate the greening of the company car fleet and encourage companies to embed sustainable mobility structurally. At the same time, the federal mobility budget remained a flexible instrument that continued to offer employees freedom of choice, within a clear and future-oriented framework.

Conclusion

From 2026 onwards, only fully electric vehicles can be used under Pillar 1 of the federal mobility budget. Existing lease vehicles contracted before 2026 can be retained until the end of their lease term.

For employees, this means gaining insight into electric vehicle options and associated costs. For employers, it means building a clear, future-proof and attractive mobility policy.