Fleet Management
Mobility Budget as an alternative to the company car
Updated
The mobility budget has become a popular alternative to the traditional company car. Instead of a fixed company car, employees receive a budget that they can spend on transport as they see fit. This offers more flexibility for both employers and employees.
How does a mobility budget work?
A mobility budget is a fixed amount that the employer makes available for business and private travel. The employee chooses their own mode of transport, such as public transport, a shared bicycle, or a combination with a car.
This ensures that transport choices better align with the employee's personal needs. More information on how to set this up can be found under business fleet management.
Benefits for employer and employee
For employers, a mobility budget offers more control over total mobility costs. Additionally, it can contribute to the organisation's sustainability goals when employees more often choose public transport.
Employees appreciate the flexibility. Someone who lives close to work can utilise the budget differently from someone who travels long distances daily.
Tax and practical considerations
When introducing a mobility budget, attention must be paid to administrative processing. Transport receipts and expense claims must be properly recorded for payroll administration.
For the specific tax treatment of the budget, consult the current rules of the Dutch Tax Authorities (Belastingdienst) or your financial advisor.
Which mobility forms are covered by a mobility budget?
Additionally, a mobility budget can offer the possibility of reimbursement for private kilometres with one's own car, carpooling, or even taxi and ride-sharing services. The specific implementation depends on the agreements within the organisation and the needs of the employee. The goal is to encourage employees to choose the most appropriate and often most sustainable option for their journey, whether it concerns commuting, business travel, or a combination thereof.
- Public transport (train, bus, tram, metro)
- Car-sharing and bike-sharing services
- Reimbursement for private kilometres with own car
- Taxi and ride-sharing services
How do you determine the amount of a mobility budget?
A commonly used method is to base the budget on the 'total cost of ownership' (TCO) of the previously used company car, including depreciation, fuel, maintenance, insurance, and any addition to taxable income (bijtelling). The income component that the employee may wish to exchange can also be taken into account. It is important that the budget is sufficient to cover the employee's mobility needs, but also encourages more efficient choices. Regular evaluation and adjustment of the budget may be necessary to keep it relevant and fair.
Frequently asked questions
Is a mobility budget mandatory for employees?
No, the employer determines in the mobility regulations whether this is offered as an option or a replacement for the company car.
What happens to unused budget at the end of the month?
That depends on the agreements in the regulations; it can often be paid out as gross salary or carried over to the next month.
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