30 December, 2021

What is the mobility budget?

Wat is het mobiliteitsbudget

The mobility budget is the alternative to the company car. 

Employees and employers who choose the mobility budget can spend the entire budget that would normally be spent by the employer on a company car on other, environmentally friendly mobility options.

For employers, the introduction of the mobility budget is a budget-neutral operation.

How big is the budget?

The mobility budget is equal to the total annual cost to the employer of providing a particular company car. This is called the 'TCO' or 'Total Cost of Ownership'. In this blog you can read how to calculate the Total Cost of Ownership.

What can employees spend the budget on?

The mobility budget can be spent within 3 pillars. Note thatas an employer , youchoose which mobility solutions you want to offer your employees. 

(read more below the image)

Wat is het mobiliteitsbudget 2

Pillar 1: environmentally friendly car

In practice, this is the option least chosen by employees and employers. Within this pillar, the employee can opt for a cheaper, electric or environmentally friendly car. The budget that remains can then be spent on pillar 2 and 3. 

This pillar offers a solution for employees who attach less importance to the class of the car, but still need a car to get around. 

An environmentally friendly car has concrete (figures for 2021):

  • CO2 emissions of no more than 95 g/km, and
  • an electric battery with an energy capacity of 0.5 kWh per 100 kg car weight
Wat is het mobiliteitsbudget 3

Pillar 2: sustainable means of transport

Within this pillar, the employee can choose a range of sustainable transport modes, such as:

  • the purchase or rental of an (electric) (moped) bicycle;
  • public transport season tickets (also for family members);
  • parking fees for the use of public transport;
  • Sharing cars, -steps,..;
  • International train tickets (also for family members);
  • renting a car (at home and abroad);
  • Housing costs (rents, capital repayments on mortgage loans and interest);
  • ...

Tip: Employees who live within a 10 km radius of their workplace (previously 5 km) or who work 60% of their working hours from home, can also finance the rent and capital repayments and interest on their mortgage loan with the mobility budget! This is a very welcome net extra for many employees and is by far the most popular choice in the mobility budget.

Wat is het mobiliteitsbudget 4

Pillar 3: Cash

The part of the mobility budget that the employee has not used for pillar 1 and/or 2 purposes is paid out in cash in one go, together with the salary for January of the following year.

This amount is first reduced by a special employee contribution of 38.07%. This percentage corresponds to an average tax rate on ordinary wages of 13.07% social security contributions and 25% withholding tax.

With this contribution, social rights, such as pensions, are built up - with the exception of the right to annual leave.

Conditions and implementation

Are you triggered to start with the mobility budget? In these blogs you can read what you need to do concretely to introduce the mobility budget and what conditions are attached to its introduction.