Ceiling of mobility allowance will be increased on 1 May

On 1 May 2020, the maximum amount of the mobility allowance will be raised from EUR 0.1316 to EUR 0.1579 per kilometre. This is a maximum amount that must be respected in order to maintain the advantageous fiscal and social character of the allowance. We will explain the consequences of this increase.

Reminder: the mobility allowance

The mobility allowance is a flat-rate scheme for the reimbursement of travel expenses in certain business sectors in which the work location is not fixed. This scheme compensates for the time spent by these workers on this travel.

The mobility allowance is subject to a special tax and social security scheme provided that:

- this lump-sum reimbursement scheme and the allowances determined under this scheme must be provided for in a collective bargaining agreement which has been declared binding by Royal Decree;

- the amount of this allowance does not exceed EUR 0.1316/km. The distance between the place of residence and the work location, there and back, is taken into account. This maximum amount shall be increased to EUR 0.1579 from 1 May 2020.

From a social security point of view, if the above conditions are met, the full amount of the allowance is excluded from the wage concept and therefore no social security contributions are calculated on it.

From a tax point of view, only 50% of the mobility allowance is considered a taxable remuneration:

- to the extent that the amount granted does not exceed the amount payable under the CBA;

- and if the work location is at least 5 km from the place of residence.

The other half of this allowance is deemed to correspond to non-taxable expenses proper to the employer. At least EUR 12.39/month of actual activity are considered as costs proper to the employer and are therefore not taxed.

Impact at sectoral level

The increase in the maximum amount does not automatically lead to an increase in the amounts to be granted at sectoral level. Sectors which provide for the granting of a mobility allowance are not obliged to grant the maximum amount exempted. Below we explain the impact of this increase per sector. All this information can be found in the sectoral information on travel expenses.

Metal construction sector (JC 111.01 and 111.02)

The mobility allowance granted in the metal construction sector will be increased to EUR 0.1429 per kilometre from 1 May 2020. This amount is then indexed in July each year, without exceeding the maximum amount.

Construction sector (JC 124)

There are three different types of mobility allowances in the construction sector.

On 1 May 2020, only drivers who transport one or more passengers in a vehicle made available by their employer will see their allowance increase from EUR 0.1316 to EUR 0.1579 per kilometre, i.e. the maximum amount. The mobility allowance granted to passengers, drivers of their proper vehicles and drivers who drive alone will not be increased on 1 May 2020, this was already done in December 2019.

Electricians sector (JC 149.01)

In this sector, a new type of mobility allowance will be created for drivers who drive alone and the 3 types of mobility allowances granted to workers who travel with a vehicle belonging to the employer will be increased. Consequently, from 1 May 2020 there will be:

• a mobility allowance for passengers of EUR 0.1384/km;
• a mobility allowance for drivers without passengers (new) of EUR 0.1453/km;
• a mobility allowance for drivers with passengers of EUR 0.1569/km.

Other sectors

In the cleaning sector (JC 121) and the sector for the planting and/or maintenance of parks and gardens (JC 145.04), the mobility allowance will not be increased on 1 May 2020.

Source: Royal Decree of  26 March 2020 amending article 19, § 2 4 of the Royal Decree of 28 November 1969 adopted in implementation of the Act of 27 June 1969 amending the Decree-Law of 28 December 1944 on social security for workers, Belgian Official Gazette of 6 April 2020