1. Introduction
The mobility budget was introduced in 2019 as part of federal legislation to promote sustainable mobility. Employees who are entitled to a company car can exchange it for a budget that they can freely spend on alternative means of transport.
The budget is structured around three pillars:
- Pillar 1: Environmentally friendly company car – A smaller, greener car.
- Pillar 2: Sustainable transport modes – Including public transport, bicycles, shared cars and soft mobility.
- Pillar 3: Cash payout – The remaining amount, subject to a social contribution of 38.07%.
Employees who live close to their workplace or mainly use public transport can achieve significant savings by exchanging their company car for a mobility budget.
The system is fiscally attractive: expenses under pillars 1 and 2 are exempt from taxes and social security contributions, while pillar 3 is subject to a limited levy. Until 2025, implementation was voluntary, but the De Wever government (coalition agreement 2025–2029) aimed for broader adoption to reduce traffic congestion and emissions.
With the recent changes that entered into force on 1 January 2026, the system has been further tightened to support the green transition and the reduction of CO₂ emissions. Below, we highlight the key changes, the structure of the budget, its benefits, challenges and the practical implications for employers and employees.
Although the original plans provided for mandatory implementation as from 2026, this obligation has been postponed to 2027 for most companies, with further phasing for smaller enterprises. This gives organisations additional time to prepare, while immediate adjustments such as stricter emission standards already apply.
2. Key changes as from 1 January 2026
As from 1 January 2026, several significant adjustments enter into force, focusing on sustainability and indexation. These changes are laid down in recent legislation and circulars of the FPS Finance.
2.1 Entry into force
- Reference date 1 January 2026: the reformed system applies from this date.
- Obligation for employers to offer a mobility budget to employees entitled to a company car is introduced, but the effective deadline varies depending on the size of the company and is postponed to 2027 or later for certain obligations.
- The former access threshold of 36 months of company car history (uninterrupted period) is abolished, making entry easier for new employers.
2.2 Stricter emission standards
- Pillar 1: Only vehicles with zero CO₂ emissions (100% electric) qualify as environmentally friendly company cars. Plug-in hybrids or low-emission vehicles (e.g. <50 g/km) are excluded. This rule applies to new purchases or lease contracts as from 2026. Existing contracts concluded before that date remain valid.
- Pillar 2: Motorised vehicles within “soft mobility” (e.g. electric scooters or mopeds) must also be zero-emission. Non-motorised options such as bicycles remain unchanged.
These measures align with the broader tax framework for company cars, under which, as from 2026, the taxable benefit in kind (BIK) for non-electric cars increases and the minimum BIK amount is raised to €1,690.
3. Indexation of amounts
The minimum and maximum amounts of the mobility budget are indexed annually. For 2026:
- Minimum: €3,233 per year.
- Maximum: 20% of gross annual salary, with an absolute cap of €17,244 per year.
The budget is calculated based on the Total Cost of Ownership (TCO) of the reference car.
4. Postponement of the obligation
Originally, the mobility budget was to become mandatory as from 1 January 2026 for all employers offering company cars. Due to delays in the legislative process, this has been postponed:
- As from 1 January 2027: Mandatory for companies with more than 50 employees.
- As from 1 January 2028: Mandatory for companies with 15–50 employees.
- Exemption: Companies with fewer than 15 employees.
This postponement was confirmed by the Council of Ministers on 9 January 2026 via a preliminary draft bill that still needs to pass the Council of State and other bodies but 2026 remains the starting point with transitional periods.
Note: Although the deadline for large companies is 2027, companies must already adapt their car policies now. Employees who choose a new car today often lock in their mobility choices for the next four to five years.
5. The three pillars in detail
The mobility budget retains its three-pillar structure, with the updates described above:
| Pillar | Description | Tax treatment | Changes in 2026 |
| Pillar 1: Environmentally friendly company car | Financing of an electric car, including charging station and accessories. | Exempt from taxes and social security contributions. | Only zero-emission vehicles; no hybrids. |
| Pillar 2: Sustainable transport modes | Public transport, bicycle leasing, shared cars, parking costs, etc., as well as housing costs under certain conditions. | Exempt. | Zero-emission requirement for motorised options. |
| Pillar 3: Cash payout | Remaining budget at year-end. | Subject to a 38.07% special employee contribution. | No changes; residual after prioritising pillars 1 and 2. |
Employers may impose conditions, such as a minimum percentage for pillar 2, to promote sustainability.
6. Benefits for employees and employers
6.1 For employees
- Flexibility: Freedom of choice in mobility, tailored to personal needs (e.g. urban vs. rural).
- Sustainability: Contribution to environmental goals with tax advantages.
- Financial: Potentially higher net income through tax-free expenditures.
6.2 For employers
- Cost efficiency: Reduction in fleet costs through a shift to greener options.
- Attractiveness: Modern HR policy to attract talent.
- Compliance: Early preparation for future obligations reduces risks.
7. Challenges and implementation
Employers wishing to implement or adapt the mobility budget to the new regulations must consider several aspects:
7.1 Administration
The administrative burden can be significant, especially when tracking expenses across the different pillars. Many employers choose to work with specialised mobility providers that offer digital platforms for easy management and reporting.
- Update existing mobility and lease policies in line with the new rules, including vehicle selection criteria, commuting rules and expense declaration procedures and ensure transparency in the TCO calculation. Since 2024, a statutory TCO formula is available (based on actual costs or a lump sum), avoiding disputes with employees.
- Identify which employees currently have, or are eligible for, a company car.
- Review fleet and remuneration policies to ensure alignment with the new sustainability focus.
- Adapt contracts in line with new definitions of zero-emission vehicles. The employee’s choice is recorded in an addendum to the employment contract.
- Book and process the various mobility expenses via payroll.
- Recalculate annually and apply indexation.
- Monitor costs. Expenses under pillars 1 and 2 must be monitored and substantiated.
7.2 Communication
Communication towards employees is crucial for successful implementation. Employees must be well informed about their options, the tax implications of their choices and the practical aspects of using their mobility budget.
Develop clear internal communication on why, when and how the transition is organised to frame expectations and choices and to encourage adoption:
- The calculation of the budget (TCO principle)
- Spending options per pillar
- The tax impact (particularly for pillar 3)
The reform fits within broader sustainability objectives. HR can link this to CSR initiatives (e.g. cycling incentives, ecological mobility plans) and retention. In today’s tight labour market, the mobility budget is a powerful asset. Employees increasingly ask for flexibility (e.g. combining a smaller electric car with an electric bike and a contribution towards rent).
7.3 Transition period
The transition period requires policy adjustments for lease contracts and car budgets. When employees opt for a mobility budget, existing lease contracts must be taken into account: in most cases, employees can only switch after the end of their lease term, unless otherwise agreed in specific situations.
Consider pilot projects (e.g. within certain departments) to gather experience before a full rollout. SMEs can already voluntarily start with the system to ensure a smooth transition ahead of their mandatory deadline.
8. Conclusion
The changes to the mobility budget as from 1 January 2026 mark a step towards greener and more flexible mobility in Belgium. By tightening emission standards and indexing amounts, the law encourages sustainable choices, while the postponement of the obligation allows for practical preparation. For organisations, this represents an opportunity to develop innovative HR policies. Employers are encouraged to already review their mobility policies, adapt their infrastructure, digitise systems and inform their staff properly. Future updates, such as the final legislation in 2026, will provide further clarification.