What does the mobility budget really deliver? The financial benefits 

for employees and employers, clearly explained

First things first: why a cash allowance usually loses

Imagine an employee exchanges their company car for a cash allowance. On paper, it looks simple. In practice, it is not quite that straightforward.

In this example, we start with an annual TCO (Total Cost of Ownership) of €9,190.

• Cash allowance = gross bonus
• After taxes and social contributions, around €3,682 net remains

That is less than half of what the car originally cost the employer. That is simply how standard taxation works.

The federal mobility budget: same budget, different rules

With the mobility budget, you work with the exact same budget, but under much more favourable rules.

We see this very clearly in practice. For example at Business & Decision, one of the first consultancy firms to implement the federal mobility budget.

Their starting point is simple: offer employees more choice and a higher net benefit, without increasing the employer’s overall cost.

Pillar 3: cash, but smarter

Employees can choose not to spend their mobility budget and receive the remaining amount in cash (pillar 3).

In that case:

• no standard income tax applies
• only a special social contribution of 38.07% is due.

In our example, the net result equals €5,691

That is over €2,000 more than a standard gross bonus.

Even if someone prefers cash, this approach is significantly more advantageous.

Where the real benefits appear: Pillar 2 (sustainable mobility)

Pillar 2 is where the mobility budget really shows its strength. Everything an employee spends here on sustainable mobility is:

• tax exempt
• exempt from social security contributions

Examples include:

• public transport
• bicycles or shared bikes
• shared cars
• taxis
• parking
• electric charging
• and yes, housing costs (under certain conditions)

Practical example:

• €3,000 spent on sustainable mobility (pillar 2)
• the remaining amount paid out through pillar 3 (cash)

Total benefit for the employee: €6,833

More mobility. More choice. More net income.

The maximum scenario: housing in pillar 2

For many people, this is a real eye opener.

If an employee spends their entire mobility budget on housing costs (such as rent or a mortgage, within the legal conditions): gross equals net.

In our example:

• €9,190 available
• €9,190 net spendable

This is where the mobility budget truly makes a difference for purchasing power.

And what about the employer?

A fair question. This system only works if it also makes sense for employers.

1. Budget control

The mobility budget is based on the existing TCO.

• no surprises
• no additional payroll costs

At Business & Decision, the principle is explicit: remain budget neutral, based on the existing TCO of the company car.

2. Less administration

• No separate expense claims, no piles of receipts or Excel files
• One platform, one invoice, clear reporting
• VAT recovery also becomes significantly easier.

At Business & Decision, the administrative savings were estimated to be almost equivalent to the workload of a half-time employee.

3. Smarter incentives instead of higher payroll costs

At Business & Decision, the focus was not on increasing payroll costs but on eliminating inefficiencies. Employees who rarely used their company car but still generated costs were able to switch to the mobility budget.

The result: a tax-efficient alternative for employees, without creating duplicate costs for the employer.

4. A more attractive employer

And yes, this matters too:

• more choice for employees
• more autonomy
• a more sustainable mobility policy

All of which helps attract and retain talent. In today’s war for talent, that's a significant benefit.

Conclusion

The mobility budget is not an extra perk. It is simply a smarter way to use the same budget.

• Employees keep more net income.
• Employers maintain control over costs and administration.
• And mobility finally becomes… flexible.

That is exactly what we work on every day at Olympus Mobility: making mobility simple for companies and easy for employees.