For employees that have a Legal Mobility Budget, any remaining amount at year-end must be paid out to employees through a Pillar 3 cash-out. This is a legal requirement. Mbrella provides a streamlined bulk process so you can handle this in just a few clicks for your whole organisation.
What is a pillar 3 cash-out?
The federal mobility budget legislation requires that any unused mobility budget at year-end is converted to a pillar 3 cash-out and paid to the employee through payroll.
Key Points:
It's a legal obligation, not optional
Happens once per year for all employees with remaining legal mobility budget
Must be included in payroll processing
Mbrella creates the necessary expense entries for you, with the necessary paycode so your social secretary can handle it correctly
Note that this is a mandatory action to take by you, the HR admin of your company, in Mbrella.
The Mbrella platform streamlines this for you so it’s a matter of a few clicks. Below, we’ll dive a bit deeper into the process.
What is the cash-out process?
1) Before You Generate Cash-Outs:
Remind employees: Send a communication asking employees to submit ALL 2025 mobility expenses before your chosen deadline. It’s important to communicate this, because no expenses can be registered once you’ve done the cash-out.
Process pending expenses: Ensure all submitted expenses are reviewed and approved
Check for any pending expense approvals
Follow up on incomplete or missing documentation
Approve or reject all 2025 expenses
2) Creating the cash-out expenses
Once you’ve done all necessary approvals of pending expenses, you can create the pillar 3 cash-out expenses with a few clicks.
You will find the “Create cash-outs” button on the budgets page in Mbrella
The bulk cash-out can only be done from January 1st onwards, because:
Employees may submit last-minute expenses in late December
The remaining amount can legally only be calculated after the budget/year has ended
3) After the cash-out creation
Once the cash-out expenses have been created, no new expenses can be added for the past budget year.
Like any other expense, the pillar 3 cash-out expense will be automatically included during your next payroll file to your social secretary.
But what if you can’t wait until the January payroll to share this pillar 3 cash-out with your social secretary?
If your organisation is using corrections in Mbrella:
you can just create an extra payroll for the month of December & share this file with your social secretary
If you’re organisation is not using corrections in Mbrella:
If you still need to do the payroll for December: the pillar 3 expenses will be included in the December payroll
If you already did the December payroll: Right after you did the bulk cash-out creation, Mbrella will automatically create an extra payroll file, including the pillar 3 cash-out information. You can find this payroll file in the usual payroll page in Mbrella and share it with your social secretary.
Which budgets are processed in this bulk creation?
Cash-out expenses are automatically created for:
✅ Eligible employees:
Have a Legal Mobility Budget for the current year
Have a remaining amount greater than €0 on December 31st
Are still employed on December 31st of this year
❌ Not eligible:
Employees who fully used their mobility budget
Budgets that are not "Legal Mobility Budget" type (Flex and Business budgets are excluded)
Employees that have recently been offboarded
Mobility budgets of employees who left before year-end will not be included.
For these employees, you need to follow the standard process for the pillar 3 cash-out - link
How do I know if the cash-out process was successful?
When you’ve triggered the bulk creation of these cash-out expenses, the logs in the platform (Settings > Logs) will indicate if the process was successful. If there was an error for certain budgets or employees, the logs will indicate this.
For a specific employee, you can see the pillar 3 cash-out expense in the list of expenses.