How to explain the mobility budget to employees: five questions that always come up

“Do I have to give up my car?” “Can I use it to pay my rent?” “And what happens to the money I don’t spend?”

When you introduce the mobility budget, practical questions soon follow. Employees want to know what it means for their own situation.

Start with one clear explanation: Belgium’s statutory mobility budget lets you exchange your company car, or entitlement to one, for a budget. You spend it within the legal conditions and the options your employer offers.

Then work through these five questions.

1. Am I eligible for a mobility budget?

The statutory mobility budget is intended for employees who have a company car or are entitled to one based on their job category. Their employer must offer the scheme and meet the legal requirements.

Employees do not need to drive a company car for a certain period before joining. Entitlement to one can be sufficient.

An existing lease can, however, affect when the current car can be returned. Check the company arrangements, application date and agreement with the leasing provider.

Make it specific: explain who can join in your organisation, how to apply and when participation can start.

For background, share Mbrella’s guide to the Belgian mobility budget.

2. Do I have to give up my company car?

You exchange your existing company car, or entitlement to one. But that does not necessarily mean going without a company car altogether.

Under pillar 1, you may be able to choose another eligible company car, provided your employer offers this option and the vehicle meets the legal conditions. You cannot simply keep your existing car alongside an additional budget.

The mobility budget has three pillars:

• Pillar 1: an eligible company car. New choices from 2026 must meet the zero-emission requirements.
• Pillar 2: sustainable mobility and certain housing expenses.
• Pillar 3: payment of the remaining balance after the special employee contribution.

Employees can combine these pillars within the employer’s offer, provided the budget is sufficient.

Use a relatable example: an eligible car under pillar 1, a bike lease under pillar 2 and any remaining balance paid through pillar 3.

3. How much budget do I get, and does it come out of my salary?

The statutory mobility budget is not an ordinary salary sacrifice arrangement. It replaces the company car or entitlement to one.

The amount is based on the employer’s total cost of the reference car: its Total Cost of Ownership, or TCO. This includes more than the lease payment. The statutory calculation method and limits also apply.

Give employees their individual budget amount. Ask payroll to explain the calculation, including the treatment of any personal contributions or other relevant pay arrangements.

The budget is not the car’s list price, its monthly lease payment or a net cash payout. How employees use it determines how it is spent.

For someone joining during the year, the amount reflects their actual participation period in calendar days.

4. Can I use it for rent, a bike or train travel?

Yes, several expenses can qualify under pillar 2, provided your employer offers them and the legal conditions are met.

Examples include bike leasing, public transport and certain housing expenses. The budget is not an unrestricted spending account: not every purchase or housing cost qualifies.

Rent, mortgage interest and mortgage principal repayments have specific conditions relating to the home, its distance from the normal place of work and supporting documents.

The normal place of work is assessed per calendar month. For homeworking or multiple workplaces, actual working hours matter. Housing eligibility can therefore change from month to month.

Share the Help Center guide to housing expenses and the explanation of bike leasing for more detail.

Above all, explain what your company offers, which documents employees need and where to submit expenses.

5. What happens to the budget I don’t use?

The balance remaining after eligible spending under pillars 1 and 2 is processed is paid out annually through pillar 3. A special employee contribution of 38.07% is deducted.

If €1,000 remains, the employee receives €619.30 net, provided the legal conditions are met.

The balance cannot be carried forward to another budget year. It must be paid no later than with the salary for the first month of the following calendar year.

Explain that the balance shown in the platform may still change because of outstanding transactions, corrections, refunds or budget adjustments.

Give employees one clear starting point

Keep your offer, application process and contact details together in one accessible place. Use familiar examples and discuss individual circumstances before employees make their choice.

Depending on the activated modules, employees can use the Mbrella app to track their budget and expenses.

Want to make the scheme easier to manage and explain? Book a demo.