Since 2019, the mobility budget has been a fiscally smart way to encourage environmentally friendly mobility within companies. And in recent years, this system has been gaining in popularity. More and more employees are spending the company car budget on sustainable alternatives: an electric bike, public transport, a shared car or even housing costs. The power of the mobility budget? More freedom, more sustainability and often more benefits in your pay package.
The federal coalition agreement announces as of 1 January 2026 reforms within this system. This will make the mobility budget more widely applicable, simpler and more versatile - while retaining the tax advantages. A win-win for both employee and employer. With reforms come questions. And that is precisely why we take you through what exactly is changing and how you can best prepare for it.
What is the mobility budget?
Today, the mobility budget is considered an attractive alternative for those entitled to a company car. Until now, employers decided whether to offer this system, but from 1 January 2026 will change: employers granting company cars will be required to provide a mobility budget.
Specifically, the employer puts the “Cost of the car” into a budget that employees are free to use within three pillars, which can be combined:
An environmentally friendly company car
Employees can choose to spend (part of) their budget on a car, as long as it meets strict environmental standards. Today, this can still be an electric or plug-in hybrid, but from 2026 only a completely emission-free car may be chosen: only electric cars will then be eligible.
Mobility and accommodation costs
Those who leave the car behind can spend their budget on alternatives such as an electric bike, public transport, shared mobility or housing costs. In this way, the mobility budget not only supports sustainable travel, but also a better work-life balance. Important change: as with pillar 1, motorised vehicles are no longer allowed to have CO2 emissions from 2026.
Payout at favourable tax rate
What remains in the budget at the end of the year is paid out along with the January salary. A special employee contribution of 38,07%, which contributes to social rights.
Today, the application is done in writing and the employer decides whether to accept it. But that is changing with the federal coalition agreement.
What will change in the mobility budget from 1 January 2026?
The reforms from the Easter Agreement lay the foundation for a more modern and accessible mobility budget. The government wants to make the system simpler, more widely available and, at the same time, more strongly committed to sustainability. These are the main changes announced:
Mandatory introduction at employers with company cars
Until now, employers could decide for themselves whether to offer the mobility budget. From 2026, this will change: companies offering company cars will be obliged to also provide a mobility budget for employees entitled to such a car.
End of the waiting period
Today, an employer may only introduce a mobility budget if the company has been offering company cars for at least 36 months. That rule will disappear completely, allowing more organisations to get in quicker.
Stricter ecological conditions for the car in pillar 1 and 2
Whereas today a car with low CO₂ emissions suffices, in future only a fully electric company car will fall under pillar 1. This would also become stricter for motorised vehicles within pillar 2.
Access for more employees
Today, the mobility budget is only possible for those entitled to a company car. The reform envisages an extension over time so that employees without a company car can also participate.
Simplification and digitisation
The administration around the mobility budget will be simpler. Think uniform reimbursement rules, digital declarations and fewer tax interpretation differences.
Note that these reforms are part of a agreement in principle and have therefore not yet been transposed into law. The concrete effect may still change, but it pays to take them into account now as an employee and employer.
Specifically, what does this mean for you as an employee?
The reform mainly benefits employees: you get more freedom to tailor the budget to your commute and lifestyle. Those who opt for sustainable mobility, such as electric driving, cycling or public transport, will continue to receive tax rewards. Moreover, what you do not spend can still be paid out in cash under favourable conditions.
There are a few things it is best to keep in mind, though:
Timing of entry
If your leasing contract is still running, you may not be able to get in until renewal.
Limitations in options
Not every employer will immediately offer all forms of mobility. The employer can also add specific conditions within the mobility policy. So you will have to check what your employer allows and are also obliged to stay within this framework.
Strict conditions
Certain types of costs (e.g. housing costs, commuting proximity) can be limited or regulated under pillar 2.
Documentation & evidence
You will need to be able to justify your spending if you opt for alternative modes (cycling, public transport, shared mobility).
Legal uncertainty
Until the legislation is final, rules may still change - keep an eye on developments.
4 tips to prepare for the mobility budget
- Inform your employer
Ask your employer what the plans are regarding the mobility budget from 2026 onwards. Be active in the policy: participate in drawing up the mobility scheme in your organisation and set your priorities (comfort, sustainability, costs). This way, you can help think about a policy that covers your needs. - Keep an eye on your lease
When does your current lease expire? That could be a logical time to switch to the mobility budget. - Set up your mobility profile
Calculate your existing commuting history, mileage and costs for alternative modes of transport - that way you can see which mix would be beneficial for you. - Follow further developments
As it is not yet a final law, the rules may still change. Follow HR news, trade associations and inform yourself through reliable sources.
Conclusion: your mobility, your choice
With the mobility budget reform, your mobility becomes your choice more than ever. You retain the right to choose a company car, but you can-also choose alternatives that better suit your values, place of residence or work pattern.
Would you like to be proactive as an employee? Start the conversation with your employee, collaborate on a future-oriented mobility policy and define your own mobility strategy.
