Mobility allowance vs. mobility budget

The mobility budget was introduced with effect from 1 March 2019. It allows an employee, under certain conditions, to exchange his company car for a budget that he can spend on various mobility solutions, with payment in cash of the remaining budget. The mobility allowance or "cash for car" scheme introduced in 2018 (see Eubelius Spotlights June 2018) will also continue to apply. Here we present an  overview table showing the main differences between these two alternatives to the traditional company car.

Mobility budget

The employer is the one to decide whether he will introduce a mobility budget. This can only be done if the employer has already made one or more company cars available to one or more employees during an uninterrupted period of at least three years immediately preceding the introduction of the mobility budget. The mobility budget can only be granted to employees who actually have a company car or who are eligible for one on the basis of their job category.

The conditions and arrangements for the allocation of a mobility budget are best set out in a policy. Employees who are eligible for a mobility budget can submit an application to the employer.

Comparison between mobility budget and mobility allowance

Conclusion

The "cash for car" scheme has had very little success so far. The mobility budget may be potentially more successful because it allows the combination of different mobility solutions, such as an environmentally friendly company car with a subscription to public transport services. It will depend on the specific situation of each employee, however, which of the two schemes proves to be of the greatest interest.

Finally, it should be noted that the Government has put together practical information and examples relating to the mobility budget on the websites www.mobiliteitsbudget.be (Dutch) or www.lebudgetmobilite.be (French).