The Legal mobility budget explained

A quick summary of the Legal mobility budget

Audrey Stampaert avatar
Written by Audrey Stampaert
Updated over a week ago

What is the Legal mobility budget? ☝️

The Legal mobility budget is an alternative to the traditional company car. It allows employees to switch their company car for a green and tax-free mobility budget. Eco-friendly cars also fit in the mobility budget.

Your advantage as employer 🤩

  • It's cost-neutral. The budget equals the Total Cost of Ownership (TCO) of the company car. You pay the same as you would for a company car

  • Optimise your salary package. It’s one of the most beneficial salary advantages in Belgium because of the absent taxes

Who is the Legal mobility budget for? 🏢

The following 2 conditions should be met before giving an employee access to the Legal mobility budget.

  • The employer should have at least one company car provided to at least one employee for an uninterrupted period of 36 months before the implementation of the legal mobility budget.

  • The employee has a company car or is eligible to have one.

Don't worry if you don't meet these conditions. We recommend you to implement a Flex mobility budget with Mbrella. Same principle. Only less tax advantages.

Note: The uninterrupted waiting period of 36 months does not apply to new companies (<36 months active).

What can I spend the Legal mobility budget on? 💸

This budget can be spent across 3 categories, called ‘pillars’. A big advantage is that it can be spent on housing costs as well!

Pillar 1 | An eco-friendly company car.

Choose an electric car or a car that scores better than your current company car

  • full electric

  • max 95g CO2/km

  • min 0,5kWh/100kg car weight for hybrids

Pillar 2 | A range of sustainable mobility options (bike, public transport, rent, ...) within the EEA

Spend across any of 100+ options

  • Soft mobility: purchase or lease an (electric) bike)

  • Non-personal mobility: public transport, shared mobility (cars, bikes, steps, etc.)

  • Housing expenses: rent, monthly interest and capital repayments on their loans, when located within 10 km of your office. Working from home more than 50% of the time? Then you can use your mobility budget to cover your housing costs!

Pillar 3 | Cash at a favorable tax rate

Receive the end-of-year leftover of your mobility budget in cash.

This amount is reduced by a special employee contribution of 38.07%, used for your social rights, such as your pension.

💡 Play with some simulations here. Get examples of how you can spend your budget

How can employees spend across pillar 2? 💳

Your employees can spend their budget in pillar 2 (shared mobility) via multiple options. Up to you!

  • Expenses. Employees add expenses to Mbrella themselves. Your HR approves them. Free functionality

  • Mobility payment cards. Recommended for heavy users of shared mobility (eg: Uber, Lime,...) but comes with a cost

So how do I get started? ▶️

Implementing a Legal budget can be an administrative hassle. Mbrella takes care of this for you. Get started in 5 easy steps.

  1. Write or update your mobility policy. You can purchase a 100% legally proof template in Mbrella or you can get help from our mobility consultant.

  2. Inform your employees of the new option to switch their car for a mobility budget. This is legally required. An e-mail is enough.

  3. Calculate the Total Cost of Ownership (TCO) for the employees who will join the mobility budget. We can calculate your TCO. It’s the total cost of the car you would have if you didn’t go for a mobility budget. It includes things like leasing, maintenance, and insurance costs, fuel, etc.

  4. Employees that choose a mobility budget, need to sign a contract addendum. You can purchase this directly in Mbrella too.

  5. Invite your employees to Mbrella. One click on a button in Mbrella.

More questions? ❓

Check these useful links

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