The ‘mobility budget’ system must be simplified before it becomes mandatory. That is what the social partners think. “Today, it is still far too complex,” they say.
The mobility budget is a system that allows employees to exchange their company car for a budget they can spend on various ‘greener’ mobility solutions, such as a smaller or an electric car, public transport, a bicycle, or even housing costs, such as part of the rent or mortgage. The mobility budget is calculated based on the total cost of ownership (TCO) of the company car to which an employee is entitled.
January 2027
A draft law, which received the Federal Council of Ministers’ green light earlier this year, makes the mobility budget mandatory from January 1, 2027, for employers with at least 50 employees who provide company cars. For SMEs with more than 15 employees, the mobility budget will be introduced a year later.
However, the social partners believe that the system must be simplified first before it becomes mandatory. This involves, among other things, reducing administrative complexity and simplifying the calculation of the mobility budget, known as the ‘Total Cost of Ownership’.
‘Perverse effects’
They also ask to temporarily exclude certain categories of employees pending the further evolution of electric vehicles. After all, some positions are difficult to combine with alternative mobility; think of sales representatives, home nurses, or other mobile professions.
The share of the mobility budget that can be spent on housing costs would be limited to 50 percent, “to avoid perverse effects”. Otherwise, the system would be less about mobility and become more of a tax benefit.
A majority of employees with a mobility budget use it, at least in part, to finance their housing costs. This option is attractive because it is completely tax-free.
There is a fear that employees with a company car will switch en masse to reimbursement of housing costs due to the mandatory introduction of the mobility budget, and the trade unions and employers’ organizations want to prevent this.
Too complex
The mobility budget system has been around for a while, but its use remains relatively limited. Of all companies required to offer a mobility budget starting next year, only 1 in 10 currently does so. Many find the system far too complex and drop out.
According to the latest figures, about 20,000 employees have a mobility budget. That is only about 1% of all employees. Or, in other words, approximately 1 in 24 employees with a company car opts for it. However, because Belgium has approximately 600,000 company cars – 15% of all employees have one – that number should rise sharply soon.
Niche
In short, the mobility budget is still a niche alongside a very dominant company car system, but it is gaining popularity. The trend is remarkably positive, with +437% growth between 2023 and 2025.
In Brussels, approximately 16% of eligible recipients are already opting for the budget. Moreover, the number of companies offering it is increasing every year. The problem is that today, only ±2.5% of employers actually offer the mobility budget.
The federal government wants to make the mobility budget mandatory to promote ‘green’ mobility and reduce the number of company cars. However, making a little-used system mandatory, without simplification, could be counterproductive.
What about other countries?
A clear trend is visible throughout Europe. A mobility budget is a valid alternative to a company car, but it is usually voluntary and not legally mandated. About 16% of large companies in Europe already use such a budget, and another 10% plan to do so.
The Netherlands has a system similar to Belgium’s, but lacks a legal framework. Germany is in a transitional phase, and France provides for a ‘mobility allowance’ rather than a real budget.
The Belgian system is therefore unique because it is regulated at the federal level, offers significant tax benefits, and will become mandatory for many companies starting in 2027.
