Do more with the mobility budget

Employees with a mobility budget make conscious and smart travel choices. Within the framework of the organisation's mobility policy, they determine how they travel and pay all travel expenses from their mobility budget. If there is money left at the end of the month, it goes to the employee. If there is a shortfall, they have to pay the difference. This is, in a nutshell, how a mobility budget works.

With a mobility budget, employees gain freedom and flexibility in their mobility. This is appreciated. By doing more with the mobility budget, you make it an even more attractive employment benefit. Below are some possibilities.

You can pay out a mobility budget either gross or net:

• Gross payment: The total budget is subject to payroll tax. This is not ideal because the employee ends up with less net income.
• Net payment: You apply a tax-free allowance for commuting and business travel (€0.23 per kilometer) and deduct this from the budget. Only the remaining amount is subject to payroll tax. This way, the employee retains more money, or in other words, more mobility for the same money.

For the tax-free allowance, it does not matter whether the employee uses their own vehicle or other forms of transportation. As of January 2024, public transport subscriptions can also be reimbursed tax-free.

Travelling by car, (leased) bicycle, public transport, shared car, shared bike, another mode of transport, or a combination of these options—it’s all possible. Choose the options that fit the mobility policy and make them easily accessible with a mobility card and app. This encourages different travel habits, and usage is automatically settled with the budget. By the way, a leased car can also be part of the mobility budget.

How do you manage the administration of all budgets, mobility options, and allowances? The Mobility Concept platform handles this efficiently and clearly. The type of mobility arrangement can be tailored to different employee categories. The platform ensures compliance with tax regulations and automatically calculates the gross and net amounts to be paid.

Clear communication is crucial when introducing a mobility budget. We are happy to help with drafting the mobility scheme and supporting employees with our choice tool. This tool provides them with insights and examples of calculations. It shows them which choices within the budget are convenient and financially attractive for them. This saves the employer many questions and gives employees the insights to make conscious travel choices. And if they still have questions, our service desk team is ready to assist them.

Want to get the most out of your mobility budget as an employment benefit? Our mobility experts help you make the most of the tax benefits, set up the right offering and automate the administration. Book an appointment.