Exchanging the company car for a mobility budget is gaining popularity, but it still remains a limited phenomenon. Those who did do so most often used the budget to pay housing loans or rent. This is evident from a study by HR service provider SD Worx.
The mobility budget will be in existence for five years on March 1. The idea behind it is that employees exchange their (right to) a company car for a budget that they can use for, for example, an electric car, a bicycle, a train, bus or shared subscription. In addition, employees can use the budget to pay a mortgage loan or house rent, at least if they live within a radius of 10 kilometers from their work or work from home more than half of the time.
And the last option turns out to be a success. “The mobility budget is very popular for financing loans and house rent, and this share has been increasing for some time,” says Audrey Stampaert of Mbrella, a digital HR mobility platform. “In 2023, 77 percent of employees used their mobility budget for housing costs.” In 2021 that was still 45 percent, in 2022 it was 52 percent. In addition, money is mainly spent on bicycles (bicycle purchase, bicycle sharing subscription, etc.).
Based on an analysis of more than 36,000 employers and more than 1.1 million employees, SD Worx states that the share of employees with a mobility budget will double in 2023: from 0.2 to 0.4 percent. One in 35 employees with a company car traded it in. The median amount of the mobility budget was 7,800 euros.
Trading in the company car is most successful among employees between 25 and 35 years old. And “especially if the employee does not really need the car or if there are sufficient alternatives available, such as in the cities,” says Veerle Michiels of SD Worx. In Brussels, 3.5 percent of employers offer the mobility budget, in Flanders 1 percent.
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