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What is the difference between the electric company car inside or outside the mobility budget?

Published on
Nov 30, 2023
Elien Verheye

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We'll get straight to the point, as there is no difference between company cars outside and inside the mobility budget. Fiscally, they are both equally advantageous. Yet there is important background information that you better take into account when faced with the choice. Because if there is no difference, you'd better opt for the flexibility of the mobility budget right away.

So in terms of the payslip, it makes little difference whether or not you opt for the company car inside or outside the mobility budget. Although it is good to know that, as an employer, you are not obliged to offer the first pillar of the mobility budget. And precisely that pillar contains the electric company car.

Ways to choose a pillar 1 car

Below are two examples to choose your car:

  • You may choose any electric company car or eco-friendly car that falls within your TCO*, and is approved by the employer. Sometimes these cars are restricted to purely electric. The maximum emission for such a car is currently 95 grams per kilometre.
  • Or you may choose any eco-friendly car within your TCO offered by the garage(s) and/or car brands the company works with. In this, the employer is free to limit the eco-friendly car to a purely electric car.

The determining factor: job category

The way you choose your (electric) company car remains the same. You may choose any eco-friendly car assigned in a job category lower than the one you belong to.

It is up to the employer to determine which vehicles are allowed in pillar 1, from which the employee can choose: either an electric company car or an eco-friendly one. Often these are vehicles that can then take all job categories. Someone with a higher job category will then have a lot of budget left over for pillar 2 or 3. Someone with a lower job category less.

This is purely the case for administrative simplicity. Indeed, only a few cars are offered in pillar 1 (often this is then outside the LMB).

Flexible mobility

And that is precisely why the mobility budget is so convenient. A flexible way to manage all forms of mobility: from an electric company car to a bicycle. Your employees can opt for a car now, later for the other pillars or vice versa. And all that is simply managed via Mbrella.

* The TCO of your car is the abbreviation for Total Cost of Ownership. It refers to the total amount of costs involved in buying and owning the car. And that during the entire cycle of use. So in addition to the purchase price, you also include all additional costs.