Mobility budget or flexplan — what’s the difference and can you combine them?

More and more companies want to give their employees a choice when it comes to transport. Two options are key: the mobility budget and the flexplan They may seem similar, but they are fundamentally different. Can they be combined? Yes, to a certain extent.

The company car is no longer the only option. Employees live closer to work, cycle more or simply want to decide for themselves how they travel. Companies are responding to this with flexible mobility solutions.

Two terms are cropping up more and more often in this context: the mobility budget and the flexplan. They are often used interchangeably, but they work fundamentally differently, have a different legal basis and are subject to different limits.

The two concepts explained

Legal framework · 2019 Act

Mobility Budget

A statutory system whereby an employee exchanges their company car (or the equivalent) for a budget. This budget can be spent on a environmentally friendly car, sustainable modes of transport, or paid out in part as net pay.

Flexible remuneration package · CAO

Flexplan

A system whereby employees convert part of their gross salary or non-statutory benefits into benefits of their choice. These might include a bicycle, a laptop, extra holiday days or hospitalisation insurance. All of this is offered as part of a package determined by the employer.

The main difference lies in the source of the budget. In the case of the mobility budget, this is the value of the company car. In the case of the flexi-benefit scheme, it is a portion of the salary or an existing benefit that is converted.

What are the main differences?

Characteristic	Mobility budget	Flexplan
Legally	Act of 17 March 2019	No specific legislation; based on tax rulings and collective agreements
Source of the budget	Value of the (current or future) company car	Gross salary, end-of-year bonus, performance-related pay or existing benefit
Who can take part?	Employees who are entitled to a company car	All employees, subject to the employer’s approval
Tax treatment	Strictly regulated by law, favourable for the three pillars	Varies depending on the benefit, less standardised
Flexibility	Limited to three legal pillars	Broadly speaking: the employer decides on the package of benefits
Role of fleet	Key point: it starts from the car	One of the possible options in the menu

What do they have in common?

Despite their differences, both systems share a number of key features:

• Both give employees greater freedom of choice regarding their remuneration or mobility.

• Both can offer tax advantages, for both the employee and the employer.

• Both require a well-thought-out policy, clear communication and effective administrative follow-up.

• Both only work effectively if employees understand what the options are and what their net benefits are.

• Neither is a ‘one-size-fits-all’ solution. The impact varies greatly depending on the situation and the individual employee.

"Flexible working only works if it’s simple for the employee. Complexity is the biggest obstacle to adoption."

Can they coexist?

Yes. A company can offer a flexi-benefit plan and introduce the mobility budget at the same time. After all, they target different groups and complement each other.

Example

Situation

Elli works as a sales manager. She is entitled to a company car with a list price of €45,000. Her employer also offers a flexi-benefit plan.

Step 1 - Mobility budget

Elli decides to swap her company car for the statutory mobility budget. That budget amounts to €8,500 per year — the Total Cost of Ownership (TCO) of the car she could have chosen.

She divides that budget across the three pillars:

• Pilar 1 — A small electric car via leasing: €5.000/year

• Pilar 2 — A trainpass + een electric bike: €2.500/year

• Pilar 3 — Net payout of the balance: €1.000/jaar

The mobility budget has been completely used up. Nothing out of the ordinary so far.

Step 2 — Flexplan

Elli also has access to the flexplan through her employer. She has decided to convert part of her end-of-year bonus into:

• Hospitalisation insurance for her family

• Extra holidays

This is completely separate from the mobility budget. She does not use the flexi-benefit plan for transport, as her transport costs are already covered by the mobility budget.

Why does this work?

Because the two systems operate in parallel without overlapping:

• The mobility budget is based on the value of the car

• The flexi-benefit plan is based on a portion of the salary

• They fund different benefits

What Elli cannot do

Using the flexplan to finance another car or mobility benefit on top of her mobility budget. That would amount to double tax optimisation on the same benefit and that is not permitted.

In practice

Neither system is perfect. Both have their limitations, their grey areas and their administrative burdens.

But they exist for a reason. Employees want freedom of choice. Companies want flexibility. And the government wants to encourage sustainability.

The mobility budget and the flexi-benefit scheme are the best tools we have today. Using them effectively is a matter of knowledge, time and a bit of courage.