The mandatory mobility budget, set to take effect on 1 January 2027 after already being delayed from 1 January this year, looks set for another delay due to pushback over the economic impacts of expanded company use.
Figures from Belgium's National Social Security Office showed that in 2024, only 0.43% of employees received the mobility budget allowance. With the scheme's mandatory expansion to a share of employees who receive a company car, new concerns have emerged about the impact higher take-up could have on public finances.
According to reporting in L'Echo, ministers are still deciding on the policy details, with just over two months until its introduction and after negative reactions from social partners.
Reporting suggests the way the existing mobility budget is structured will be reexamined, as well as ways to mitigate the potential loss of tax revenue from company cars.
Analysis from business consultancy firm EY has also raised the prospect of a €1 billion annual fall in tax revenues, driven by a drop in revenue from company car taxes.
Ministers are also reportedly debating whether to cap the portion of the mobility budget that could go to housing costs at 50%, following fears about the impact on property prices. Any cap would affect employees already receiving their mobility budget in this way.
Mandatory mobility budget - what was planned?
From January 2027, employers with a company car scheme and over 50 employees were set to be obliged to offer a mobility budget as an alternative to anyone previously within the scope of their company car policy.
Around 22% of all employees in Belgium receive a company car. From 1 January 2028, the mandatory mobility budget requirement was also set to extend to companies with at least 15 employees.
Under the mandatory mobility budget, employees could use their allocated 'company car budget' to keep a company car or take the budget in one of three other ways.
These include using the budget to cover zero-emission options such as public transport tickets, or housing costs such as rent (if they live within a certain range of the office).
Alternatively, the employee can take the budget as a lump sum, but must pay 38% social security contributions on the cash out.
Economy Minister David Clarinval (MR) has given indications that a delay from 1 January 2027 is likely. Alternatively, the compliance date for companies may be shifted away from the start date.
Another labour law change, the mandatory recording of employees' working time by Belgian businesses, was also due to start on 1 January 2027. However, the Employment and Labour Ministry said that the real deadline for companies to comply will be 1 April 2027.
