indexation of the mobility budget and reimbursement of housing costs

Beneficiaries of the mobility budget who use it to cover their housing expenses often wonder about the possibility of indexation for the following year to increase their reimbursement. Here are some considerations on this subject.

The Impact of Indexation on the Mobility Budget

When applied, the indexation of the mobility budget typically results in a modest increase, limited to a few euros per month.

• Maximum Amount: The index can raise the mobility budget by €0 to approximately €20 per month, as the employer determines the percentage increase, capped by the sectoral salary index.

  
  

However, the majority of companies choose not to index the mobility budget for several reasons:

• Indexation is not mandatory:

  • It remains an option that management may decide on based on its economic context.

• Decrease in electric vehicle costs:

  • The cost of electric vehicles, central to the calculation of the Total Cost of Ownership (TCO), has peaked and is beginning to decline due to falling battery prices.

• Discrepancy between indices:

  • The mobility budget is based on the TCO of company cars, but its indexation is tied to the sectoral salary index, which does not always reflect clear economic realities.

• International economic context:

  • Wage indexation in Belgium already affects the competitiveness of companies in the international market. Many employers hesitate to extend this effect to the mobility budget.

    
    

Timing Constraints

The timing of decisions often complicates the indexation of the mobility budget:

• Sectoral index:

  • Salary indexation is generally confirmed in January, leaving little time for employers to decide whether and how to apply indexation to the mobility budget.

• Reimbursement scheduling:

  • Housing cost reimbursements linked to the mobility budget must be scheduled by December at the latest to ensure payment in January.

• Administrative reprogramming:

  • Adjusting reimbursement amounts after January creates an administrative burden. This cost is often charged to the mobility budget, which employees prefer to avoid.

    
    

Possible Solutions

• Wait for the employer's decision:

  • Employees can wait for the company's decision on indexation, though this may delay housing cost reimbursements for January (and sometimes February).

• Use existing amounts:

  • Employees can request reimbursement at the same level as the previous year without waiting for indexation confirmation.

• Reallocate the budget:

  • Employees can use unallocated budget for other soft mobility expenses instead of applying it to housing costs.

• Year-end adjustment:

  • If indexation is decided, employees can request reimbursement in December for unused housing costs throughout the year.

• Employer's early decision:

  • Some employers choose to decide on indexation in November or December, enabling smooth programming of reimbursements starting in January.

    
    

In Summary

Indexation of the mobility budget remains a complex decision influenced by the internal policies of each company and economic constraints. The proposed solutions allow employees and employers to navigate this process in a manner adapted to their needs.