A significant majority, 77% of Belgian employees benefiting from the mobility budget, are choosing to allocate it towards housing expenses, specifically mortgage payments or rent, as per insights from HR platform SD Worx and Mbrella.
The mobility budget, a government initiative currently accessible to 0.4% of Belgian employees, aims to incentivize individuals to reside within a ten-kilometer radius of their workplace, thereby mitigating traffic congestion.
Traditionally, the budget encompasses various expenditures including bicycle expenses, holiday car rentals, and public transportation. However, the landscape has shifted amidst the Covid-19 pandemic, with a substantial increase in remote work. Consequently, employees have been granted permission to utilize the budget for housing costs if more than 50% of their working hours are conducted remotely.
Amaury Gerard, co-founder of Mbrella, underscores that this transition towards using the mobility budget for housing does not deter from its primary objective of reducing car usage. “The fundamental principle remains: fewer commutes translate to less traffic congestion,” he remarked to L’Echo. Moreover, Gerard predicts that employees who capitalize on the accommodation benefits of the fund are unlikely to revert to conventional company car arrangements. “Once workers experience the flexibility afforded by the mobility budget, the appeal of the traditional company car diminishes,” he adds.
Previously, the mobility budget was reserved for employees eligible for company cars, constituting 14.4% of the Belgian workforce. However, a significant policy shift occurred in January 2022, granting employers the discretion to extend the program to all employees. Presently, one in five companies offers the mobility budget. Despite intentions outlined in the ‘Vivaldi’ coalition’s government agreement to extend the budget universally, implementation has been stalled.
Employers are tasked with monitoring employees’ adherence to teleworking quotas on a monthly basis. The Department of Social Security is slated to conduct more comprehensive audits in the near future to ensure compliance with designated minimum and maximum amounts, akin to criteria applied to company cars, including allocations towards housing expenses.