Until now optional, the mobility budget will have to be offered from 2027 onwards by companies with at least 50 employees. Far from being an additional burden, this change also presents an opportunity to modernise your remuneration policy whilst keeping costs under control. Here's what you need to know to approach this change with confidence.
The mobility budget is nothing new: it has existed in Belgium since 2019. What is changing is that it will soon no longer be optional for some employers. Until now, each employer was free to decide whether or not to offer it. The government now plans to make it compulsory for a large proportion of businesses, with the recent backing of the National Labour Council, which has, however, requested a few adjustments to make implementation easier for employers.
The good news is that this scheme is designed to be budget-neutral. It does not represent an additional wage cost, but rather a new way of allocating a budget that you would be spending on your employees' mobility anyway.
What is the mobility budget?
The mobility budget allows employees who have a company car, or who are entitled to one, to choose an alternative by receiving a budget equivalent to the actual annual cost borne by the employer. In practical terms, the employer does not pay anything extra: they simply redistribute the same amount in a different form, which is more flexible for the employee and often more tax-efficient for the company.
This budget can be used across three pillars:
- Pillar 1: a more environmentally friendly car.
- Pillar 2: sustainable modes of transport, public transport, cycling, scooters, or even the cost of accommodation close to the workplace.
- Pillar 3: the unused balance is paid to the employee once a year in cash (subject to social security contributions, but not to personal income tax).
For the employer, social security contributions remain comparable to those for a company car, whilst the amounts paid into pillars 2 and 3 often benefit from more favourable tax and parafiscal treatment than a traditional salary. It is therefore an attractive way to optimise the existing wage bill, whilst reinforcing the image of a modern, sustainable employer that is attentive to the expectations of its staff, a significant advantage in the current war for talent.
Who will be affected, and from when?
The requirement will be phased in gradually, depending on the size of the company, giving everyone time to make the necessary arrangements:
|
Company size |
Date of entry into force |
|
50 or more employees |
1 January 2027 |
|
Between 15 and 50 employees |
1 January 2028 |
|
Fewer than 15 employees |
No obligation |
There is one further condition: the requirement applies only to employers who have been providing company cars for more than 36 months. The draft legislation also provides for welcome exceptions, even for companies exceeding the 50-employee threshold: companies in financial difficulty and those undergoing collective redundancies due to closure will not be required to offer the mobility budget.
Another reassuring point is that this is an obligation to offer, not to impose. Employees remain entirely free to keep their current vehicle. The employer therefore does not make any decisions on behalf of their staff, they simply broaden the range of options available.
How can you prepare effectively for the transition?
Although certain details still need to be finalised, there are several best practices that will help you prepare for this obligation with confidence:
- Take stock of your current fleet: identify any current leasing or hire contracts and their expiry dates. You are not obliged to wait until these contracts end to inform your teams, but there is nothing to stop you from aligning the transition with their terms to avoid any additional costs.
- Plan your internal communication in advance: a clearly explained mobility budget is generally seen as a benefit, not a constraint. Taking the initiative allows you to frame it as an HR initiative rather than simply a legal obligation.
- Review your remuneration policies and contracts: the scheme must be coordinated with existing benefits (insurance, fuel cards, etc.). Seeking legal or HR support now will help avoid any unpleasant surprises in 2027.
- Make the most of the flexibility provided by the legislation: you can phase in the implementation, either by job category or in line with contract renewal dates.
The mobility budget is set to change status: what was once an option will soon become a requirement for a large proportion of companies. Certain details still need to be clarified, but one thing is certain: if tackled early enough, this change can become an opportunity to modernise your remuneration policy and enhance your appeal as an employer, without placing an additional burden on your budget.
By Damien Stas de Richelle and Sander L.M. Parthoens - Attorneys Laurius