Mobility budget and your pay: why employees think they're losing out (and how to fix that)

From 2027, the mobility budget could become mandatory for Belgian companies with more than 50 employees, and from 2028 for those with 15 or more. While the political trend seems clear, the reaction from employees is usually less so.

The moment "budget" replaces "company car" or "salary" in the conversation, something starts nagging. People do the math, compare, and sometimes conclude they're losing out. Usually that comes down to how it's explained.

Why employees think they're losing money

A company car feels concrete: you drive it, you see it every day, and its value was never in question. A mobility budget is a number in euros, more abstract and easier to get wrong.

There's also a calculation detail behind that confusion. The budget is based on the total cost of ownership (TCO) of the car: leasing, fuel, insurance, and taxes combined, based on what the employer already spends. Gross salary plays no part in that. Comparing the two figures often produces a smaller number than expected, leading people to wrongly conclude the budget is "less" than the car.

That smaller number simply stands for something else, paid out differently from the salary people are comparing it to.

Why the net result usually comes out ahead

The budget isn't taxed like a regular pay raise. The part spent on a car is taxed the same way as today's company car: a low flat-rate tax on the benefit in kind. The part spent on sustainable transport or housing near work comes in fully net. Whatever an employee doesn't use gets paid out in cash, at a fixed 38.07% contribution instead of regular tax and social contributions.

That percentage sometimes alarms people, but on a regular pay raise, an employee typically pays more than 38.07% in tax and contributions. Even the cash portion usually beats an equivalent amount added to gross salary.

A concrete example: before and after on the payslip

Take an employee with a car whose TCO runs about €800 a month, who switches to a budget and splits it like this:

• A smaller eco-friendly car at €500 a month, taxed the same way as the previous car: low flat-rate tax on the benefit in kind.
• A train pass and a lease bike, together €150 a month, fully net.
• The remaining €150, paid out in cash. After the special 38.07% contribution, the employee keeps about €93 net.

Aside from the eco-friendly car itself, that's roughly €243 extra net per month. An equivalent gross pay raise would come out noticeably lower after tax.

These are illustrative figures: the exact amount depends on someone's situation, tax bracket, and choices. That's why it matters to make this concrete per employee, not just in general terms.

How to communicate this internally without raising suspicion

Most resistance to a mobility budget comes from how it's announced. A few approaches that work:

1. Show the net effect: always translate the budget amount into a concrete net example, like above.
2. Use a personal simulation, not a generic email: a blanket announcement raises questions no one can answer individually.
3. Explain it in plain language, not legal text: "this part is tax-free, this part is taxed like your current car" works better than a reference to the Van Peteghem law.
4. Don't wait for the 2027 or 2028 deadline: starting now gives employees time to get used to the idea.
5. Show what colleagues are already doing: concrete examples persuade faster than theory.

Preventing that "losing out" feeling starts with transparency

For most employees, a mobility budget is simply an improvement; the legislation is rarely the real reason for resistance. The word "budget" feels vague next to a tangible car, and no one likes doing math with uncertain numbers.

Give employees clarity on what changes on their payslip and let them simulate their own situation. The "I'm losing out" feeling disappears on its own. Mbrella shows employees that insight in the app: how much budget they have and what each choice yields net.

Want to see this for your team? Book a demo and we'll work through a tailored example.