The mobility budget: an overview

The mobility budget is a legal provision from November 2019 that allows employees to exchange their company car for a flexible budget. This budget can be spent on more sustainable mobility solutions and/or housing costs, divided into three pillars.

• Why are there three pillars?

The law divides the budget into three spending categories (pillars), each with its own tax treatment.

• What does Pillar 1 entail?

An eco-friendly company car that meets strict environmental standards (e.g. an electric car or a model with low CO₂ emissions).

This has exactly the same tax treatment as a classic company car.

• What does Pillar 2 entail?

Sustainable mobility solutions and housing costs.

This is the most flexible pillar. No income tax or social security contributions are due on expenses within this pillar.

• What does Pillar 3 entail?

A cash disbursement of the unspent portion of the budget on December 31.

No tax is due on this amount, but a social contribution of 38.07% is due.

WHAT CAN BE REFUNDED?

The country of mobility must be within the EEA. The transportation can be for the employee, family members, or friends. The rental invoice or payment must be made out in the employee's name.

· Rental of soft mobility and shared vehicles in the European Union: unicycles, scooters, bicycles, tricycles and quadricycles powered by muscle power and/or electricity.

All rental companies are permitted. Accessories related to the rented bike are permitted (helmet, GPS, assistance, etc.).

WHAT IS NON-REFUNDABLE?

· Your employer may have disabled this benefit.

· Refund requests paid in the previous calendar year.

Refund requests with a payment date that was before the start date of the employee's mobility budget.

· Scans of tickets without fare or proof of payment.

Not all options or limitations are described. If there are any discrepancies between documents or if you have any questions about reimbursement, please contact your mobility manager.

WHAT CAN BE REFUNDED?

For a purchase, the invoice or payment must be made out in the employee's name. The purchase of one or more items, new or used, from a store, online, or from a private individual.

Purchase of a bicycle, unicycle, scooter, tricycle, or enclosed quadricycle, not faster than 45 km/h, powered by human power and/or electric. Motorized tricycles and quadricycles, as defined in the general regulations on road traffic law and the use of public roads, are only considered if they are electrically powered and designed for passenger transport and, in the case of quadricycles, equipped with an enclosed passenger compartment.

Purchase of all specific accessories attached to the bike (bags, mobile phone holders, bike locks, bike-specific GPS, etc.). Purchase of mandatory safety equipment as described in the Highway Code (helmets, fluorescent vests with reflective strips), and other clothing with reflective strips and/or primarily fluorescent.

Maintenance, repairs and spare parts, storage costs and secure bicycle boxes.

Roadside assistance, insurance (theft, comprehensive, third-party liability).

The option to purchase multiple bicycles for yourself or family members, without the obligation to commute. Purchase a moped or an electric motorcycle.

WHAT IS NON-REFUNDABLE?

Your employer may have disabled this allowance, which will then not be available in the allowance menu of the Olympus Mobility App.

Smartwatches, smartphones, vehicles towed by a pedestrian.

Bicycle carriers (which can be part of pillar 1 as an accessory of a commercial vehicle).

Refund requests paid in the previous calendar year. Refund requests with a payment date before the start date of the employee's mobility budget.

Purchases without a clear description of the items purchased or proof of payment.

Not all options or limitations are described. If you encounter any discrepancies between documents or have any questions about reimbursement, please contact your mobility manager.

New in 2024: Indexation of minimum and maximum amounts

Since January 1, 2022, mobility budget amounts must comply with:

· Minimum: €3,000 per year

· Maximum: 1/5 of the gross annual salary , with a ceiling of €16,000 per year.

Starting January 1, 2024, these amounts will be indexed based on the health index. The thresholds for 2025 are:

· Minimum: €3,164 per year

· Maximum: €16,875 per year

New in 2025: Annual adjustment of the mobility budget

Until now, the mobility budget could only be changed in the event of a promotion or job adjustment.

From January 1, 2025, pursuant to Circular 2024/C/19 of February 29, 2024, employers can adjust an employee's mobility budget annually in January, depending on the previous year's salary increases, within the limits of the indexed thresholds.

(answer from the Federal Department of Mobility to a question from MMBB bv)

The mobility budget may not exceed 1/5 of the employee's total gross salary. Specifically, here are the salary components included in the total salary for the mobility budget:

As stated in FAQ 6.3., the employee's total gross salary that is taken into account for the mobility budget maximum is that referred to in Article 6, § 1, paragraph 3, of the Act of 12.04.1965 on the protection of employees' wages.

"The total gross remuneration is that referred to in Article 6, § 1, paragraph 3, of the Act of 12 April 1965 on the protection of employees' wages, namely the salary in cash and the benefits to which the employee is entitled as a result of his employment, in particular:

Gross monthly wage; Single and double holiday pay are excluded from the definition of wages by Article 2, paragraph 3 1°, a) of the aforementioned law

Variable compensation (commissions, premiums, bonuses, etc.)

· End of year bonus;

· Employer's share in the meal vouchers;

· Lump sum valued mobile phone and PC benefits (according to instructions from the RSZ);

· Other benefits established by sectoral collective labor agreements (e.g. CAO90, eco-cheques, annual bonus other than the end-of-year bonus, etc.);

· Reimbursement of costs

· Private use of the company car

· Other benefits in kind, Private transportation costs

Bicycle allowance

· Protective allowances for Works Councils, CPBW or trade union representatives

· Private PC plan, Ecological purchase vouchers

We would like to add that the minimum and maximum mobility budget amounts are checked when the mobility budget is determined. After that, this amount generally remains unchanged. Only in the event of a promotion

or job change, i.e. when an employee is placed in a job category with a higher or lower company car, the size of the budget will fluctuate up or down, and this from the first day of the month in which the promotion or job change takes place.

We would like to point out that this advice in no way affects the sovereign power of the competent judicial authorities.

We can only answer in the context of the solution we offer through this platform.

If you wish to manage the mobility budget yourself or via platforms other than Olympus Mobility, this can be much more time-consuming and complex than managing a traditional company car.

Managing the mobility budget — with all the possibilities of Pillar 2 — is generally estimated at one third of managing a company car, provided that:

Pillar 1 (the ecological company car) is not offered

You use a service provider that takes care of the full management via its app, including Pillar 2 refunds (such as the app from Olympus Mobility, Shell, Alphabet or Attentia)

What are the main operational tasks you perform as an employer?

Explain how the mobility budget works to candidates (videos are available for this purpose)

Sign the mobility budget agreement

· Create the employee in the management portal and allocate the budget (only takes 2 minutes)

· Possibly phase out the employee upon departure (outboarding)

All other actions (such as purchases, refunds and questions) are managed by the employee themselves through the app.

Below are the basic steps. However, depending on your specific needs, additional steps may be necessary.

When ordering packages 1 through 4, we'll be happy to connect you with companies that can offer solutions to your specific mobility needs.

1. Drafting a mobility policy

2. Determining eligible employees

3. Calculation of the budget (TCO)

4. Communication to employees

5. Administrative and technical setup (e.g. via a platform)

6. Start onboarding

With our packages we will help you from steps 1 to 6.

These are factors that positively influence a switch to a mobility budget:

· There is already another company car within the family.

· The employer and employee are on a route that is easily accessible by public transport.

· The employee lives less than 10 km from his or her main workplace.

· The employee uses the company car little or not at all for professional travel.

· Parking at the employer's is a real problem.

The employee prefers a cheaper car to spend the rest of the budget on soft mobility (bicycle, public transport for the family, rental car during holidays, etc.).

· The employee can use the mobility budget to fully or partially reimburse housing costs.

We can only answer within the context of the solution we offer through this platform.

The mobility budget policy determines which services are available (with or without pillar 1), and the rest is managed through the app — provided you use one of the following apps: Olympus Mobility, Shell, Alphabet or Attentia.

The conditions for Pillar 1 of the mobility budget in Belgium, which relate to choosing an environmentally friendly company car, are specifically laid down in legislation. Here are the main requirements:

1. Emission standards

The car must meet strict environmental standards:

Maximum CO₂ emissions: From 2021: maximum 95 g/km (WLTP standard).

There is no restriction for vehicles that are completely emission-free (such as electric cars).

Euro standard obligation: The vehicle must meet the Euro 6 standard or higher.

From January 1, 2026, all newly purchased company cars within the mobility budget must be fully electric.

Employees who choose a new car within the mobility budget must always choose a car with lower emissions than the previous car.

2. Electric and hybrid vehicles

Hybrid vehicles must have a minimum battery capacity of 0.5 kWh per 100 kg vehicle weight and may not operate solely on a combustion engine.

Fully electric cars are strongly encouraged and often receive a financial benefit within the budget.

3. Company car policy

Pillar 1 of the mobility budget cannot be offered by the employer.

The permitted vehicles and their use are described in the employer's mobility budget policy.

WHAT CAN BE REFUNDED?

The departure and arrival countries must be within the EEA. For purchases, the invoice or payment must be made out in the employee's name.

All types of public transport tickets within the EEA, except air travel (train, tram, bus, coach, metro, boats & ferries), are linked to the employee. Tickets can be for the employee, family members, or friends.

All private bus services.

All types of public transport passes within the EEA, except air travel (train, tram, bus, coach, metro, ferries) linked to the employee or a family member living under the same roof (a family composition certificate can prove this).

WHAT IS NON-REFUNDABLE?

Your employer may have disabled this benefit.

Air transport.

Refund requests paid in the previous calendar year.

Refund requests with a payment date before the start date of the employee's mobility budget.

Scans of tickets without fare or proof of payment.

Public transport outside the European Economic Area (for example Switzerland and England are excluded!).

Not all options or limitations are described. If you have any discrepancies between documents or questions about reimbursement, please contact your mobility manager.

WHAT CAN BE REFUNDED?

The countries of departure and arrival must be within the EEA. The transport can be for the employee, family members, or friends.

The invoice or payment must be made out in the employee's name.

All taxis and car-sharing services within the EEA can be reimbursed: Uber, Lyft, BlaBlaCar, Ride Guru, Moovit...

WHAT IS NON-REFUNDABLE?

Your employer may have disabled this benefit.

Refund requests paid in the previous calendar year.

Refund requests with a payment date that was before the start date of the employee's mobility budget.

Scans of tickets without fare or proof of payment.

Not all options or limitations are described. If you encounter any discrepancies between documents or have any questions about reimbursement, please contact your mobility manager.

WHAT CAN BE REFUNDED?

The countries of departure and arrival must be within the EEA. If your partner is the driver listed in the rental agreement, ensure you are the payer and can provide proof. The invoice or payment must be made out to the employee.

Self-drive car rentals within the EEA, with a limit of 30 days per year. These vehicles may have combustion engines. (Hertz, Avis, SIXT, Europcar, Thrifty, etc.)

All car rental companies within the EEA are permitted. For example, you can rent a van for a move, a ceremonial car, a campervan, or your vehicle for your vacation.

Car insurance or options included in the contract, except energy.

WHAT IS NON-REFUNDABLE?

Your employer may have disabled this allowance, which will then not be available in the allowance menu of the Olympus Mobility App.

Caravans, trailers...

Future rental (wait until the rental has actually taken place).

Petrol or electric charging costs.

Rental days exceeding 30 days per calendar year.

Refund requests paid in the previous calendar year.

Refund requests with a payment date that was before the start date of the employee's mobility budget.

Request without full proof of payment.

Not all options or limitations are described. If you encounter any discrepancies between documents or have any questions about reimbursement, please contact your mobility manager.

WHAT CAN BE REFUNDED?

Any bank or store financing contract up to 36 months, the contract must be in the employee's name. Thanks to financing (from an EEA bank), you can immediately benefit from a bicycle, even on a tight budget. For around €90 per month, you can finance a bicycle worth €3,000!

Private financing for a bicycle, unicycle, scooter, tricycle, or enclosed quadricycle, not exceeding a speed of 45 km/h, powered by human power and/or electricity. Motorized tricycles and quadricycles, as defined in the general traffic regulations and the use of public roads, are only considered if they are electrically powered and designed for passenger transport and, in the case of quadricycles, equipped with an enclosed passenger compartment.

All permitted bicycle options as described in "Buying a Bicycle" and included in the contract.

The ability to finance multiple bicycles for yourself or family members, without the obligation of a

commuting.

WHAT IS NON-REFUNDABLE?

Your employer may have disabled this benefit.

Refund requests with more than one financing contract.

Refund requests for payments made in the previous calendar year.

Refund requests for payments made before the start date of the employee's mobility budget.

Not all options or limitations are described. If you encounter any discrepancies between documents or have any questions about reimbursement, please contact your mobility manager.

WHAT CAN BE REFUNDED?

Condition: The residence must be less than ten kilometers from the employee's usual workplace, and the employee must be one of the signatories of the contract.

If the employee primarily works from home, the home-work distance is 0 km. The distance is measured in a straight line using Google Maps. The employee's country of residence must be within the EEA.

If your refund request is accepted and you were entitled to refunds for past months, we will reimburse these when refunds begin.

· For rent: The monthly rent for the employee's home, including actual common costs (such as cleaning of common areas, elevator maintenance, etc.) paid and documented separately from the private costs included in the rent.

Furthermore, for the common charges, only the annual statement or the fixed monthly payments are refundable: interim advance payments are not accepted. To request a refund of the annual common charges, you will need the detailed invoice from your landlord.

For mortgages: Employee mortgages or loans with a mortgage mandate, related to the employee's home, covering both principal and interest. Early mortgage repayments may be accepted. Other costs are excluded.

WHAT IS NON-REFUNDABLE?

· Your employer may have disabled this benefit.

Private charges such as electricity, data, heating, water, etc.

· The contract costs subject to subletting or used for professional activity.

· Refund requests for payments made in the previous calendar year.

Refund requests for payments made before the start date of the employee's mobility budget.

Not all options or limitations are described. If there are any discrepancies between documents or if you have any questions about reimbursement, please contact your mobility manager.

WHAT CAN BE REIMBURSED

Reimbursements under Pillar 2 must relate to goods purchased or services provided within the European Economic Area (EEA).

The 30 countries of the European Economic Area, in alphabetical order: