Although large employers will be required to offer a mobility budget starting in 2027, Belgian companies do not expect a mass switch. The mobility budget may well be presented as an alternative to the company car, but employers do not believe that employees will adopt it en masse.

According to a study by SD Worx among 250 large employers in Belgium, only 26% of employees with a company car will be interested in the mobility budget. Moreover, more than half of employers expect employees will still use it primarily to opt for a car again – a 100% electric one.

Just a quick reminder: 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.

Not very popular

The deadline is fast approaching. Today, 18% of large Belgian companies have already introduced a mobility budget, and another 19% indicate they are largely ready to implement one. It is striking that 21% still hope the requirement will be postponed.

According to 52% of employers, someone switching vehicles will primarily opt for a 100% electric car. In second place is the reimbursement of housing costs (41%), and in third place are sustainable transport solutions, such as public transport, bicycles, or shared mobility (34%). 

Employees attribute the lack of greater popularity for the mobility budget to the fact that, for a significant group of employees (40% to 63%), their company car remains an essential work tool required for business-related travel.

Belgian system is quite unusual

According to employers, the introduction of the mobility budget entails various challenges. One-third (34%) expect higher costs, 33% point to logistical challenges, such as the need for additional charging infrastructure, and 32% anticipate extra work for HR. 

The ‘mobility budget’ today is rather complicated. “The system must be simplified before it becomes mandatory.” That is what the social partners think. 

The Belgian mobility budget system, however, is quite unusual internationally. Especially the housing component raises questions. Is this still mobility policy, or has it become another Belgian form of tax-efficient remuneration?

Other European countries

Other European countries certainly have mobility budgets and tax incentives for sustainable commuting. But the Belgian federal mobility budget is unusually generous and unusually broad.

A VUB study describes Belgium as the first European country to establish a legal framework that specifically allows employees to exchange their company car entitlement for a mobility budget.

The Dutch model is primarily an employer-HR/fiscal arrangement under normal tax rules. France’s statutory ‘Forfait mobilités durables’ is much more narrowly targeted at actual commuting: up to €600 tax-free annually, or €900 when combined with a public-transport subscription. And Germany considered a €2,400 mobility budget but dropped that provision from its 2024 tax legislation.

Housing

However, in Belgium, housing dominates the system: SD Worx’s own payroll data show that three out of four mobility-budget users choose to have their housing costs reimbursed.

The actual attraction of the mobility budget so far is not primarily the train, bicycle, or car-sharing. It is being allowed to pay a bill you already had – your mortgage or rent – with tax-advantaged money. And financially, that’s enormously attractive.

The system is not legally abusive but, in policy terms, more debatable. Anyway, it is far from the original purpose of the mobility budget: remove cars from the road and reduce traffic. The problem may well run deeper: it is simply incredibly difficult to get people out of their company cars.

Company cars

A VUB study of 527 Belgian company-car drivers found that respondents wanted an average of €683 per month before they would consider relinquishing their company car.

Only 45% would even consider exchanging it for financial compensation, and among those contemplating a switch, many would simply buy a private car instead.

The company car seems to be a classic lock-in: once your home, workplace, and family routine have evolved around having an almost all-inclusive car on the driveway, getting someone onto a mobility budget requires more than handing them an SNCB card.