Federal mobility budget: status, insights, and approach

The federal mobility budget is on the eve of an important reform. During our webinar on 6 July 2026, we explained the changes and scenarios currently on the table, their expected impact on employers, and how companies can start preparing in practical terms for the mandatory introduction.

An important part of the webinar was the presentation of the study on the mobility budget, which brings together three perspectives: an analysis of the legal framework, data on the actual use of the system, and practical experiences of employers and stakeholders. The identified pain points and possible reform proposals formed the common thread throughout the discussion.

Based on the current draft texts, offering a mobility budget would become mandatory for employers who provide company cars for more than 36 months. For employers with at least 50 employees, 1 January 2027 is put forward as the target date; for employers with 15 to 50 employees a later phase will follow from 1 January 2028. The final timing will depend on the outcome of the legislative process.

During the webinar, we discussed three possible scenarios for the next steps following the opinion of the Council of State.

1. In the first scenario, the draft law remains unchanged in substance and only the obligation is introduced.
2. In the second scenario, limited adjustments follow via circular letters, royal decrees, or FAQs.
3. In the third scenario, a broader amendment of the legislation is needed, so approval may only occur later in the autumn. In this scenario, it will be difficult to have the obligation enter into force as of 1 January 2027.

After discussing the new legislation, we zoomed in on the study. It confirms that the mobility budget has gained importance in recent years, but also that the system is not yet naturally embedded in day‑to‑day HR, payroll, and fleet practices. The analysis combined regulations, NSSO monitoring, mobility data, and interviews with employers and stakeholders. It shows that further growth mainly depends on simplification, predictability, and operational feasibility.

The study puts forward several avenues to make the system more workable: consolidation of rules and interpretations in a more stable framework, a more transparent calculation mechanism that better aligns with internal car budgets, more predictability for Pillar 1, and a reconsideration of the treatment of housing costs. The target vision is a budget-neutral mobility budget that is easier to manage and places greater emphasis on genuine mobility choices. Want to know more? 

The findings of the study underline that employers should determine their own approach in good time: which employees are eligible, when they can join, how the budget is determined, which options are offered in Pillar 2, how to deal with ongoing lease contracts, and whether a Pillar 1 car is provided. The treatment of business travel and existing net expense allowances must also be carefully clarified in advance.

Waiting for the final legislation may seem safe at first glance, but it can put pressure on implementation. Employers can already start preparations today.

We highlighted a number of practical recommendations:

• Think carefully in advance about the scope: for whom does the mobility budget apply, from when, and how do you deal with ongoing lease contracts?
• The calculation of the mobility budget contains many pitfalls. Good preparation prevents surprises.
• Pillar 1 will become even more important now that employees can no longer be excluded. How should employers offer and value this pillar?
• Pillar 2 requires deliberate choices. How should employers address the “elephant in the room”: the reimbursement of housing costs?
• Map out all points of attention and possible scenarios in advance and translate them into a clear policy and transparent communication.
• Minimize the administrative impact as much as possible. Are you using the cafeteria plan via the KPMG tool? Then you can also use the integrated module to request the mobility budget and automate a large part of the administration.

This way, the mobility budget becomes a well-considered part of the broader reward and mobility policy, rather than a mere compliance exercise.