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The mobility budget is to have an official calculation formula

19 October 2023 Karolien Van Herpe Employers

Good news for companies that wish to implement the mobility budget: the government has published an official formula to calculate the amount of the annual mobility budget. This comes with a view to raising transparency in order to hopefully further increase mobility budgets.

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Sustainable through the mobility budget

The mobility budget is a green solution for employees who have the use of a company car. The company car budget enables employees to use their mobility in alternative ways (a more eco-friendly car, sustainable means of transport such as an electric bike, etc.), with any remaining balance being paid out at the end of the year.

Official concretisation of Total Cost Of Ownership (TCO)

Exactly how do you calculate the annual mobility budget as a company? The way to do so is by way of your TCO, which stands for 'Total Cost of Ownership' (the annual gross cost of the company car to the employer).

But which costs may or may not be included? And what about the cost of green company cars under pillar 1? To clear up any ambiguity on these matters, an official concretisation of the term TCO was published in the RD of 10 September 2023.

New calculation formula

The options for calculating the mobility budget remain in place:

  • according to each employee's company car;
  • through a calculation based on a reference car per job level.

Two permitted calculation methods from 2024

From 1 January 2024, in order to calculate the annual mobility budget and the cost of the eco-friendly company car under pillar 1, employers will get to choose between the actual costs or the new flat rate formula.

Actual costs

This are all the average annual costs involved in the company car which the employee waives. All of these costs must be compulsorily included in the calculation. This includes costs such as the depreciation and insurance coverage of the company car, road tax, costs relating to charging posts, etc. For an overview of all actual costs, please contact the team at Acerta Legal Consult.

Flat value formula

As an alternative to the actual cost formula, the government has now also created a flat rate formula. This formula enhances transparency and legal certainty and also simplifies all the admin associated with the mobility budget.

There is a separate formula for rented/leased cars and for cars that are purchased (a.k.a. sales leases).

The method of calculation chosen by the employer is to be communicated to the employees and is fixed for a period of at least 3 years, for the company as a whole. This choice can be entered in the mobility budget policy, for example.

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Written by Karolien Van Herpe

Senior Legal Consultant Legal & Reward

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