Six years after its introduction, the mobility budget is still struggling to find its place in the Belgian employee landscape. While uptake is growing, it remains limited. According to an analysis by HR consultancy Acerta Consult, based on data from more than 350,000 employees and 28,000 employers in the private sector, the number of companies offering this option has more than doubled in three years, but remains modest, with only 3.2% of employers using it.
Designed as an alternative to the company car, the scheme offers employees three options for replacing it: opting for a more environmentally friendly vehicle, choosing alternative transport solutions or receiving financial compensation.
Traditionally favoured by young workers, the mobility budget is now attracting an older population. In one year, the number of people in their 40s and 50s who have opted for this solution has jumped by 83%, notes the report. Changing lifestyles play a key role: children have left home, people are moving to urban centres with better public transport links--these are factors that make the company car less essential.
A still marginal scheme
Despite this growing interest, companies remain reluctant. In 2024, only 3.23% of employers offering company cars had introduced a mobility budget. However, the Belgian government is planning to make the scheme more widespread by requiring employers to systematically offer it to employees entitled to a company car.
Another problem is that the majority of employees who benefit from this offer turn to financial compensation: “The strength of the mobility budget could also become its weakness,” says Catherine Langenaeken, a consultant at Acerta Consult. “Our figures show that the third pillar, money, is still chosen quite often, even if it is chosen a little less each year. But it’s the least attractive choice financially, since it involves paying social security contributions.”
The conditions are another obstacle. “For example,” Langenaeken continues, “under the current system, only employees with a company car have access to the mobility budget. As far as employers are concerned, only those who have company cars as part of their salary policy can offer the mobility budget.” As a result, “pioneers who have never introduced company cars for reasons of sustainability do not have this option. We look forward to finding out to what extent the drafting of the brand new government agreement addresses this issue.”
Where does Luxembourg stand in all this?
While the mobility budget is struggling to establish itself in Belgium, it could prove relevant for Luxembourg, which needs to significantly reduce its fleet of combustion-powered cars by 2035 in order to meet European targets for reducing greenhouse gas emissions.
The attractiveness of this scheme would be enhanced by the fact that public transport is already free in teh grand duchy, allowing employees to allocate their budget to other items of expenditure. For example, in Belgium in 2024, 61% of employees who took the cash put it towards housing costs. This could make sense in Luxembourg, where property costs are a major issue, particularly in the capital.
Finally, the development of soft mobility in Luxembourg makes it a favourable location. With a target of 950km of cycle paths, the country has some of the best cycle infrastructure in Europe. This is an advantage that could encourage employees to adopt the mobility budget, provided that companies and the government see the strategic interest.
This article in French.