Tuesday, 28 May 2019
One year after Belgium’s Cash for Car program was introduced, few companies are taking advantage of its benefits.
Cash for Car allows employees who use company cars to exchange them for money. Since March, this has also included employees who do not have cars but qualify for one.
SD Worx, an HR service provider, represents 24,000 companies that use company cars. According to New Mobility, SD Worx counted only 142 switches to Cash for Car.
The problem is that Cash for Car competes with the mobility budget system. Under mobility budget, employees can switch their cars for more eco-friendly options and receive cash or use other means of transportation, such as carpooling or riding bicycles.
Mobility budget and Cash for Car also calculate their payments differently. Cash for Car bases the monthly sum it pays on the list price of the car, while mobility budget uses the real yearly cost for the employer as the basis. The employer pays 38% on that amount.
The Brussels Times