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Everything about the mobility budget!

March 2, 2020
5 min read
Mobility, Tips

Why do we need a mobility budget?

The average driver spends 195 hours a year stuck in traffic in Brussels alone. You can imagine how fed up people are of commuting, so much that 45 percent of Belgians are ready to move closer to work in order to avoid traffic jams! Besides the time and productivity wasted in traffic, there are many other benefits to giving employees alternative solutions: helping to fight climate change, contributing to employee well-being, and giving your company a competitive edge. The mobility budget is not only a greener solution than the company car, it’s more flexible and fiscally attractive.

The ABC’s of the mobility budget

What’s the mobility budget all about? Here are the basics you should know:

  • It allows employees to transfer their “company car budget” into a flexible mobility budget for private mobility
  • It’s optional: employers & employees can choose it if it works for them
  • It gives employers the freedom to define which transport options are available, as long as they’re sustainable
  • It can be spent by the employee (& family) on sustainable mobility
  • It can be cost neutral for the employer

How to define the mobility budget for every employee?

The amount of the mobility budget is based on the Total Cost of Ownership (TCO) of the company car for the employer: this includes leasing or rental costs (or the annual depreciation of 20% in case the car is purchased), non-deductible costs or taxes like VAT, and any other costs including fuel and insurance. The employer can also generalise the calculation and make it the same for all employees of the same level. This is especially helping employers since the real TCO will vary slightly from employee to employee.

How can employees spend their mobility budget?

The employee is free to spend that gross budget on three pillars, depending on the options offered by the employer. Any budget remaining from one pillar can be spent on the following pillar.

  • Pillar 1Greener company car: either an electric car or a hybrid (less than 50g CO2/km and a battery capacity of 0,5kWh per 100kg of car mass) or low-emissions combustible car that meets the emission criteria (less than 100g CO2/km in 2020, 95g CO2/km in 2021). Pillar 2Sustainable transport & housing costs: this includes the purchase or lease of “soft mobility” such as a bike or e-scooter, or expenses for public & shared transportation (train, bus, shared bike, shared car, etc.) It can also be used to cover rent or interest costs for housing located within 5 kilometres of the office where the employee works.
  • Pillar 3Remaining budget: any budget left over at the end of the year goes into the employee’s pocket, after having paid a fixed social contribution of 38.07%. This amount is exempt from traditional employer contribution and income taxes.

Why work with Skipr?

The employer is legally required to put a smart mobility solution in place so employees can consult their available mobility budget at all times. That’s where Skipr makes it easy for everyone! We give employees a convenient way to spend their mobility budget on public transport and shared mobility that is completely transparent, so both employees and employers have more peace of mind. The admin is a cinch with our single monthly invoice and direct integration with payroll systems.

In short: Skipr makes the set-up, admin and consumption of the mobility budget a smooth ride.

Check out our plans here.

Would you like to know how the Mobility budget could help your company decrease costs, lower CO2 emissions & boost your employee happiness?

Discover our free mobility assessment

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