The mobility budget was introduced with effect from 1 March 2019. It allows an employee, under certain conditions, to exchange his company car for a budget that he can spend on various mobility solutions, with payment in cash of the remaining budget. The mobility allowance or "cash for car" scheme introduced in 2018 (see Eubelius Spotlights June 2018) will also continue to apply. Here we present an overview table showing the main differences between these two alternatives to the traditional company car.
The employer is the one to decide whether he will introduce a mobility budget. This can only be done if the employer has already made one or more company cars available to one or more employees during an uninterrupted period of at least three years immediately preceding the introduction of the mobility budget. The mobility budget can only be granted to employees who actually have a company car or who are eligible for one on the basis of their job category.
The conditions and arrangements for the allocation of a mobility budget are best set out in a policy. Employees who are eligible for a mobility budget can submit an application to the employer.