The mobility budget for companies: What it is and how it works

Budget for sustainable mobility

The mobility budget is a modern employer benefit and gives employees additional sustainable mobility options for their commute to work. It offers many advantages for employees and the company: Employees can use public transportation (ÖPNV), car-sharing services, e-scooters, bicycles, cabs and other mobility options. Companies define the framework conditions of the budget flexibly and can take advantage of tax benefits for both themselves and their employees. It can also be an important component of the sustainability strategy and therefore also part of the sustainability report.  

The use of the mobility budget is usually managed via a digital platform or smartphone app, which ensures transparency and user-friendliness. The average amount of a mobility budget varies depending on the company, target group and number of employees. There are no limits: you set the amount yourself and can therefore adapt the budget flexibly and optimally to the needs of your employees. Various reports therefore paint a mixed picture: the amounts vary between 0 and 300 euros.

In what form can companies offer a mobility budget?

Companies can offer the mobility budget in three different forms - depending on the individual requirements of the company and its employees:

Salary supplement: Employees receive the mobility budget as an additional benefit that is not deducted from their existing salary. As it is perceived as an additional benefit, this option increases the attractiveness of the employer. This results in higher costs for companies, which are incurred in addition to the salary and are usually taxable.

Benefit in kind: The mobility budget is offered as part of the salary supplement in the form of a benefit in kind. Within the statutory exemption limits, it remains free of tax and social security contributions - an advantage for companies and employees alike. However, the amount of the tax-free benefit in kind is limited by law (currently 50 euros per month), which is why this option is not sufficient for every employee.

Salary conversion: Part of the existing salary is converted into a mobility budget. While companies save on personnel costs, employees enjoy tax benefits. In return, they have to forgo part of their gross salary.

The current legal and tax situation regarding the mobility budget

The Annual Tax Act 2024 clarified the regulations on the mobility budget and makes it more attractive from a tax perspective. Under certain conditions, the budget can be treated as a benefit in kind and remains tax-free - provided it does not exceed €50 per month. The Deutschlandticket is therefore not tax-free at the current price of 58 euros. For higher amounts or salary conversion, the general tax regulations for non-cash benefits apply. Companies benefit from tax concessions if the budget is used exclusively for environmentally friendly means of transport such as public transport, bicycles or car sharing. This new regulation makes the mobility budget even more attractive as part of a sustainable corporate strategy and creates further incentives to use environmentally friendly means of transport. Companies should carefully examine the tax aspects and advise their employees accordingly.

Three advantages of the mobility budget for companies

1. Increases employer attractiveness: Companies show that they respond to the needs of employees and offer flexible, sustainable mobility solutions.

2. Supports sustainability strategy: Companies with a mobility budget can reduce their_{carbon footprint} and support their ESG goals.

3. Better cost efficiency: Compared to traditional company cars, mobility budgets save costs, for example through lower maintenance and administration costs.

Three advantages of the mobility budget for employees

1. Cost savings: The use of environmentally friendly and cost-effective means of transportation such as public transport or bicycles reduces mobility costs for employees.

2. Versatile use: Employees can use the budget for various means of transportation and thus make their commute to work and leisure travel more flexible and sustainable.

3. Tax benefits: Under certain conditions, the mobility budget is tax-privileged, making it an attractive additional benefit.

Which mobility budget providers are currently available?

There are various providers on the market to support companies with implementation. Even if the concepts and business models are similar, there are still differences. The three best-known providers of mobility budgets include Navit, Lofino and Bonvoyo. These providers each offer different functions and service packages tailored to the individual needs of companies. Navit is an easy-to-manage digital platform and integrates various mobility options. Lofino specializes in providing mobility budgets combined with tax benefits. Bonvoyo focuses on sustainable mobility solutions for companies and employees.

Conclusion: The mobility budget as a win-win offer

The mobility budget is a modern and sustainable approach to making employee mobility more flexible and environmentally friendly. Companies benefit from improved employer attractiveness and cost efficiency. As a benefit, this offer is part of a successful concept to retain employees in your company. The budget also contributes to sustainability goals. Employees appreciate the variety of possible uses and the tax advantages. Thanks to clear legal regulations and innovative providers, the mobility budget is a forward-looking solution for sustainable company mobility.

Do you want to create ecological, economic, and social understanding? Support the associated transformation? And embed sustainability throughout your entire company? With the Sustainability College of Haufe Akademie Build your employees’ skills in a targeted manner and remain competitive.