Mobility budget

Introducing a mobility budget has several advantages for both employers and employees. First, it gives employees more freedom of choice in how they travel to work. Instead of a fixed travel allowance or company car, employees can decide how to spend their mobility budget. This allows them to choose, for example, an electric bike or public transport, which can contribute to a more sustainable society.

In addition, a mobility budget can also be cost-saving for employers. Instead of reimbursing fixed travel expenses, a mobility budget can be set up where employees make their own choices. This allows the budget to be used more efficiently and saves costs.

Finally, introducing a mobility budget can also help reduce congestion and improve the accessibility of companies. Giving employees more choice in how they travel to work can reduce pressure on roads and make better use of public transport.

TCO stands for the 'total cost of ownership' of a company car - the total cost associated with the provision of a company car.

The Total Cost of Ownership of the car an employee is entitled to or TCO is used in the statutory mobility budget to start determining the total budget an employee has to spend in the different pillars. The TCO includes all the costs of a car, including purchase price, fuel costs, maintenance, repairs, insurance and taxes.

Unlike traditional company car leasing budgets, a TCO approach includes all costs, with the main additional factors being fuel or charging costs and (para)tax charges.

Thus, the TCO budget of a company car will concretely consist of:

• the lease costs (usually including insurance and maintenance costs)
• the fuel or loading costs
• the non-deductible VAT
• the corporation tax on the non-deductible car costs
• the CO2 solidarity contribution for social security
• the expense allowances related to the company car (e.g. monthly flat rate of EUR 15 for parking)
• less the own contribution paid by the employee

A concrete worked out example of a TCO calculation can be found via the link!

A cafeteria plan and a mobility budget are both elements that can be offered by employers to employees to offer more flexibility in the salary package.

A cafeteria plan allows employees to use part of their salary to purchase benefits in order to enjoy a tax advantage. This budget can be used for various benefits such as multimedia, hospitalisation insurance for your partner, extra contribution for cars, etc.

A mobility budget is a legally regulated choice that can be offered by an employer to employees to create a fixed budget that employees can use to finance their commuting. Here, the budget can be used for different means of transport, such as a bicycle, public transport or a leased car. The mobility budget thus offers employees more freedom and flexibility in their transport choices.

Compared to a cafeteria plan, a mobility budget thus offers more targeted support for employees who want to optimise their commuting. However, a cafeteria plan offers more flexibility in the choice of working conditions and may also include other important benefits, such as a higher pension or extra holidays.