Mobility budget: what is it and how does it work?

More and more employers are switching to a mobility budget. It offers greater flexibility than a company car and suits hybrid working better.

A mobility budget is a fixed amount that employees use for their commuting. You set the budget, and they choose their transport. With NS Go, you can manage everything on one platform: public transport, shared mobility, automatic billing, and 24/7 access to costs and CO₂ emissions. Less administration, more clarity.

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What is a mobility budget?

A mobility budget is a fixed amount per month or per year that employees use for their commuting and business travel. They select the mode o transport that suits their situation, while you set the budget and conditions. Employees can choose from:

Public transport, such as an NS season ticket or single tickets
A bicycle or shared bike
A shared car or carpool
Their own car

The mobility budget serves as an alternative to both the traditional company car and a fixed mileage allowance.

Benefits of a mobility budget for employers

Freedom of choice for employees

Employees no longer have a fixed company car but a mobility scheme that matches how they actually travel. They appreciate this, and it makes you a more attractive employer.

Cost control

You set the budget in advance. There are no unexpected lease invoices or rising fuel costs. This saves money since a company car still costs you when it is not used: you pay ongoing lease and depreciation fees. Additionally, from 1 January 2027, the pseudo final levy on (fossil fuel) company cars will apply, increasing costs even further. Read more about the pseudo final levy.

Sustainable mobility and CO₂ reduction

A mobility budget encourages environmentally friendly travel options. This contributes to your organisation’s CO₂ targets and demonstrates your commitment to sustainable business practices. Discover more about greener business travel by train.

Attractive employee benefit

Job seekers increasingly prefer employers who offer hybrid working options and a flexible mobility allowance. This gives you a strategic advantage in attracting and retaining staff.

Less fleet administration

No lease contracts, no vehicle insurance. Less paperwork, more clarity.

Benefits for employees

Flexibility: choose daily the transport that suits them, including for hybrid working.
Savings: employees keep any unused budget if they travel more cheaply.
No additional tax: employees who do not opt for a company car do not pay additional tax. This saves them a significant amount. Whether this option is available depends on your employer’s arrangements.

How does a mobility budget work?

There is no specific law for the mobility budget. The usual tax rules from the Dutch Tax and Customs Administration apply.

How high can a mobility budget be?

There is no legal maximum; as an employer, you decide the budget amount.

What can you reimburse tax-free?

You can reimburse employees up to €0.23 per kilometre tax-free for commuting and business travel, regardless of the mode of transport. An increase to €0.25 per kilometre has been announced, which will apply retroactively from 1 January 2026.

Work-related expenses scheme (WKR)

If you reimburse more than the tax-free limit, the excess falls under the free space of the work-related expenses scheme (WKR).

Gross or net

A gross budget is subject to wage tax deductions. A net budget is set after tax. This makes a significant difference to what employees actually receive.

Calculating gross to net mobility budget

How much an employee keeps net depends on their choice of transport. If they use their own car, part of the budget is tax-free, and the rest is not.

Example calculation

€800 budget, 1,000 km commuting per month by own car:

Component	Calculation	Amount
Tax-free kilometre allowance	1,000 km × €0.23*	€230 tax-free
Remaining budget (gross)	€800 − €230	€570 gross
Net of €570 (tax rate 36.97%)	€570 × 63.03%	approx. €360 net
Total net amount received		approx. €590 net

*The tax-free kilometre allowance may increase to €0.25 per kilometre.

Note:

The tax rate used (36.97%) is indicative. The actual rate varies per person and year.
Employees still pay their own travel costs, such as fuel and maintenance, from the net amount.

If the employee chooses the train, you can often reimburse the public transport season ticket tax-free. This means they keep more with the same budget.

How to set up a mobility budget as an employer

Step 1: Set measurable goals

What do you want to achieve? Consider lower CO₂ emissions, reduced costs or happier employees. Clear goals will help you evaluate the results later.

Step 2: Involve employees early

Ask for their input. This encourages everyone to contribute and lets employees share their own preferences.

Step 3: Analyse travel patterns

How do employees travel now and what do they need? Tailor the mobility budget to actual transport requirements.

Step 4: Seek advice

Consult a tax advisor about fiscal rules. NS Zakelijk can support you with your mobility and sustainability goals.

Step 5: Develop a policy and communication plan

Create a policy or adjust your existing mobility policy. Inform all involved about the changes and benefits. Make sure employees know how to make the most of the budget.

Step 6: Provide the right systems

Arrange the tools to manage the mobility budget and connect them to your existing HR and travel expense policies.

Step 7: Keep evaluating

Set KPIs and regularly review progress. Adjust the plan if the situation requires it.

If you want to start using a mobility budget but do not know where to begin, we are happy to help and advise you.

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Let NS Zakelijk help you with the mobility budget

Manage your employees’ mobility budget on a single NS Go-platform. From public transport and shared mobility to automatic settlement with your HR systems.

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Free whitepaper: Meer medewerkers op de fiets

How do you create an attractive cycling policy that fits perfectly within your mobility policy? Discover the answer in the whitepaper (in Dutch).

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Whitepaper NS Go - Meer medewerkers op de fiets

Frequently asked questions about the mobility budget

What is the difference between a travel allowance and a mobility budget?

A travel allowance is a fixed amount per kilometre or a set monthly payment. You decide the amount, and the employee has no choice in how to use it.

A mobility budget works differently: the employee chooses their mode of transport. Whether by train, bike, shared car or private car, as long as it fits within the budget. This offers more flexibility, especially with hybrid working. Employees who spend less than their budget keep the difference.

Is offering a mobility budget mandatory?

No, a mobility budget is not legally required. As an employer, you are free to decide how to reimburse travel expenses. Collective labour agreements or employment contracts may impose restrictions. Always check the agreements that apply within your organisation.

Are you considering introducing a mobility budget? NS Zakelijk can support you from the first steps to setting up the right systems. Would you like to know more?

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What are the drawbacks of a mobility budget?

A mobility budget requires employees to take more personal responsibility. For those who travel long distances, a lease car can sometimes be more advantageous: the employee always has a car available and knows exactly what to expect. Implementing a mobility budget also needs more preparation time than a standard lease arrangement. However, when set up properly, it involves less operational administration than managing a fleet or lease process.

Which is better: a lease car or a mobility budget?

That depends on the situation. If an employee drives a lot and values a car as a benefit, a lease car is suitable. For someone working hybrid and travelling irregularly, a mobility budget offers more: no additional tax charges, greater flexibility and less administration. You set a fixed budget in advance and manage everything on one platform, without separate lease contracts or vehicle insurance.

Can I combine a mobility budget with a lease car?

Yes, you can. Some employers provide a lease car for long business trips and a mobility budget for commuting. Make sure the employee is not reimbursed twice for the same journey under both schemes. Bear in mind that a lease car has ongoing costs, even when not in use. An NS train subscription can be a good alternative for many employees. If you have any questions, please contact us.

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