Looking back at 2024, it is clear that more employees are being offered cafeteria plans and federal mobility budgets. This year-end update focuses on the main updates and trends in flexible rewards and mobility.
Bike leasing: do not forget to report the company bike on Tax Form 281.10!
The actual cost of the company bike must be declared on tax form 281.10 as of income year 2024. A new section, 14e, will be added to form 281.10 (benefit arising from the provision of a bicycle or speed pedelec).The company bike will remain exempt from taxes and social security contributions insofar as it is partly used for commuting. Additionally, the employee should apply the lump-sum deduction of professional expenses in personal income tax, with a maximum of 5,750 EUR for 2024, which is verified through the personal tax declaration (and tax form 281.10). If the employee would prove their actual professional expenses, the tax authorities will subject the cost of the leasing bike to taxes.
Flexibility for health care workers
The JC 330 health care sector now has the option to flexibly use their 13th month for a bike leasing via their employer. To implement this flexibility, a collective labor agreement (CLA) on company level is required.
Reimbursement of childcare costs
The reimbursement of childcare costs in a Flexible Reward Plan is possible again, but subject to specific conditions. Employees can receive a reimbursement for actual childcare expenses up to a maximum of 600 EUR per year per child (exempt from social security contributions but remains subject to withholding taxes). Employees must provide proof of the actual costs incurred to qualify for this reimbursement such as holiday camps or daycare.
Trends for 2025 in flexible reward
As we summarize the key trends in Flexible Reward for 2024, we observe a growing emphasis on sustainability and second-hand benefits, as well as the integration of ESG principles. Companies are increasingly offering second-hand bikes and cars, along with refurbished IT devices, as part of their compensation packages. This shift aligns with broader ESG goals, reflecting a commitment to reducing environmental impact and promoting sustainability.
Another notable trend is the rise in insurance offerings within flexible reward plans. Companies are recognizing the importance of providing comprehensive insurance options, such as dental and ambulatory care, to meet the diverse needs of employees.
The upgrade of company cars is also becoming more common in flexible reward plans. This trend is driven by the electrification of vehicle fleets and rising prices, which have pressured vehicle budgets. Through flex plans, employees can choose to finance additional costs or a home charging station in a tax-efficient manner. Additionally, to remain competitive, employers are offering the option to select a company car via the flex plan for employees who are not traditionally entitled to one based on their function level.
The inclusion of business smartphones in flexible reward packages is another emerging trend. Many employers are adopting the 'Choose Your Own Device' (CYOD) approach, providing a smartphone budget that reflects the cost of a standard company phone. Employees can opt for a more expensive device, funded by their available flex budget. This trend underlines the increasing importance of connectivity and technology in the workplace, allowing employees to stay connected and productive while choosing their preferred devices.
The top benefits for 2024 include multimedia, the reimbursement of pension savings, bike leases, insurances, extra holidays, new or upgraded company cars, warrants, fuel cards or home charging stations, office-at-home setups, and mobility apps with public transport options. These offerings highlight the evolving landscape of employee benefits, emphasizing flexibility, sustainability, and personalization.
Indexation of the minimum and maximum amount of the Federal Mobility Budget
We are still waiting for the official confirmation, but in principle, the minimum and maximum yearly amounts of the mobility budget will be indexed to 3.164 EUR and 16.875 EUR.
If you have employees with a TCO higher than the current maximum amount of 16.293 EUR (and the cap of 20% of the total gross salary is not reached), you can elevate the mobility budget of your employee to 16.875 EUR as of January 2025.
Following some legal adaptations last year on the mobility budget, the assessment of the mobility budget against the minimum and maximum amounts should be done at the following moments:
- at the time of determining the amount of the mobility budget, i.e., at the time the employee starts with the mobility budget
- at the time of a job change or promotion,
- as well as on 01.01 of each year.
If you have employees whose salary has changed, this may also have an impact on their mobility budget as of 2025 as it will change the outcome of the 20% total gross salary cap.
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