Employees want more flexibility in 2024, not only in terms of where they work and their working hours, but also in terms of their mobility. In times of rising energy prices, the climate crisis and increased sustainability awareness, many people are also demanding more sustainable mobility options. One trend in 2024: flexible mobility budgets will become an attractive benefit for employees. Companies are discovering mobility beyond company cars and job tickets and are opting for a mobility budget as an alternative or supplement. This offers employees flexibility when choosing their means of transport, such as public transport, car sharing, bicycles or petrol and charging cards. But how much should a mobility budget for employees be?
The mobility budget is becoming increasingly important as a forward-looking form of mobility management in companies. It allows employees a flexible choice of different modes of transport and helps to promote more environmentally friendly transport options.
A mobility budget addresses the changes in employees' needs in the context of changing working environments. Companies and their employees want to make a greater contribution to climate protection, making traditional company cars less attractive as status symbols. According to an SAP Concur study, 40% of respondents no longer approve of company cars, while around 50% prefer more flexibility in their choice of transport.
The mobility budget is particularly suitable for employees who are regularly mobile and use different modes of transport for their commute. This includes commuters, frequent travellers and urban workers who can benefit from the variety and flexibility of alternative mobility solutions.
Read now: Employers should be aware of these 7 mobility profiles
The benefits for employers include increased employee retention and motivation, a positive corporate image as an environmentally conscious employer, potential cost savings on parking and travel, and more flexibility in working hours and customer accessibility.
Create the work place of tomorrow with NAVIT. We are happy to support you with designing the best mobility solution for your company. Get in touch with us!
Contact us
An effective mobility budget should be flexible, meet the needs of employees and cover a wide range of mobility options. A clear mobility policy defines the conditions and restrictions for the use of the budget. This includes mobility selection, usage rules, user groups, tax regulations and the amount of the budget.
In principle, it is subject to taxation in the same way as salary or other non-cash benefits. It is important to consult a tax advisor or the relevant authority (keyword: Anrufungsauskunft) at an early stage in order to know the exact tax regulations. Mobility budget providers can provide expert support here.
The taxation of mobility budgets involves various considerations, whereby certain mobility options are tax-free for employers and employees. Examples include public transport tickets and the provision of company bicycles. This article explains in detail the different tax implications, including the benefit in kind or the employer paying a flat rate of 15% income tax on certain benefits.
Firstly, the amount of the mobility budget can be negotiated individually between the company and the employee, without specific legal requirements or minimum amounts. As a rule, companies set budgets of between 100 and 300 euros per month per employee, but the actual amount depends on factors such as the size and structure of the company, the number of employees and the industry. The individual mobility needs of employees also play a key role. Many companies set the mobility budget at around 1-2 per cent of an employee's gross annual salary to ensure that the costs of mobility are adequately covered.
The amount of the mobility budget varies depending on the employer, based on the level of employment and requirements. Companies can differentiate themselves in the competition for skilled labour by introducing a mobility budget, and the amount of the budget also plays an important role here.
Granting a mobility budget of 50 euros is attractive from a tax perspective. This is because up to an amount of 50 euros, the mobility budget can be deducted as a benefit in kind and is therefore tax-free. Amounts in excess of this are taxed at a flat rate of 30 per cent.
Factors that influence the amount of the mobility budget:
Our mobility experts at NAVIT would love to share their knowledge with you about the new mobility product. Feel free to get in touch with us!
Get infoA mobility budget offers various advantages compared to the classic company car. It gives employees more flexibility in their choice of transport, promotes environmentally friendly mobility and can be more cost-efficient.
The mobility budget can offer attractive options for all employees. For those entitled to a company car, an incentive can be created to ...
Employees who are not entitled to a company car have the option of using the mobility budget provided for individual mobility or for travelling to and from work. Employees can benefit from tax savings when using the mobility budget, as public transport, for example, is tax-free.
How high are mobility budgets? Example of "company car downsizing"
Employees who are given a company car do not have to give it up straight away. Also, depending on the company structure, not all company cars can be replaced by a mobility budget. A mobility budget can act as a supplement to the company car. This gives employees the opportunity to opt for a smaller, more efficient and cheaper vehicle - for example an electric vehicle - and in return receive an additional mobility budget corresponding to the amount saved. This practice is often referred to as downsizing. It involves replacing the company car with a smaller and cheaper model, while the mobility budget provides additional flexibility. This allows companies to reduce costs without giving up the benefits of a company car altogether.
How high is the mobility budget? Example of "company car replacement"
If the conditions in the company are right for replacing the company car with a mobility budget, the framework conditions should be defined. It makes sense to stipulate this in the existing car policy or in a newly formulated, more comprehensive mobility policy: Who can use it for which journeys and to what extent?
For employees entitled to a company car, the reference rate of the vehicle to which they are entitled can be used as a starting point. If the company wants to achieve savings with the mobility budget, the sum can also be set below the reference rate. The levels at which it is offered depend on how many employees are to benefit from it or are to be motivated to travel to work by alternative means of transport other than the car. In this way, more employees can be reached than just those who are eligible for a company car. This controls corporate mobility and the carbon footprint.
Companies should also clarify how to deal with residual amounts left over at the end of the month. There are also various scenarios that a company should run through in order to find the best possible solution. On the one hand, the private use of residual amounts can be permitted in order to reward a particularly economical use of mobility. Another option is to invest the unused budget in selected sustainability projects.
Careful planning and communication are required for the introduction of a mobility budget to be successful. Companies should inform their employees transparently about the benefits and address any concerns. It is also crucial that the budget is customised, taking into account the needs of the employees. Integration into operational processes and the provision of suitable platforms or tools for easy administration are also critical factors for success.
This 10-step guide provides practical tips for smooth implementation in the company.
Sign up for our newsletter to receive the latest insights about our mobility solution products like the 49 eurojob ticket.
