Mobility budget 2024: How high should it be?

Employees want more flexibility in 2024, not only in terms of where they work and their working hours, but also in terms of their mobility. In times of rising energy prices, the climate crisis and increased sustainability awareness, many people are also demanding more sustainable mobility options. One trend in 2024: flexible mobility budgets will become an attractive benefit for employees. Companies are discovering mobility beyond company cars and job tickets and are opting for a mobility budget as an alternative or supplement. This offers employees flexibility when choosing their means of transport, such as public transport, car sharing, bicycles or petrol and charging cards. But how much should a mobility budget for employees be?


  1. Mobility budget - mobility management of the future
  2. Who is a mobility budget suitable for?
  3. How should a mobility budget be set up?
  4. How is the mobility budget taxed?
  5. How high should a mobility budget be?
  6. Mobility budget or company car?
  7. How to introduce it in your company

Mobility budget - mobility management of the future

The mobility budget is becoming increasingly important as a forward-looking form of mobility management in companies. It allows employees a flexible choice of different modes of transport and helps to promote more environmentally friendly transport options.

A mobility budget addresses the changes in employees' needs in the context of changing working environments. Companies and their employees want to make a greater contribution to climate protection, making traditional company cars less attractive as status symbols. According to an SAP Concur study, 40% of respondents no longer approve of company cars, while around 50% prefer more flexibility in their choice of transport.

Who is a mobility budget suitable for?

The mobility budget is particularly suitable for employees who are regularly mobile and use different modes of transport for their commute. This includes commuters, frequent travellers and urban workers who can benefit from the variety and flexibility of alternative mobility solutions.

Read now: Employers should be aware of these 7 mobility profiles

The benefits for employers include increased employee retention and motivation, a positive corporate image as an environmentally conscious employer, potential cost savings on parking and travel, and more flexibility in working hours and customer accessibility.

Do you have questions about how to set up your company mobility?

Create the work place of tomorrow with NAVIT. We are happy to support you with designing the best mobility solution for your company. Get in touch with us!

Contact us

How should a mobility budget be designed?

An effective mobility budget should be flexible, meet the needs of employees and cover a wide range of mobility options. A clear mobility policy defines the conditions and restrictions for the use of the budget. This includes mobility selection, usage rules, user groups, tax regulations and the amount of the budget.

How is the mobility budget taxed?

In principle, it is subject to taxation in the same way as salary or other non-cash benefits. It is important to consult a tax advisor or the relevant authority (keyword: Anrufungsauskunft) at an early stage in order to know the exact tax regulations. Mobility budget providers can provide expert support here.

The taxation of mobility budgets involves various considerations, whereby certain mobility options are tax-free for employers and employees. Examples include public transport tickets and the provision of company bicycles. This article explains in detail the different tax implications, including the benefit in kind or the employer paying a flat rate of 15% income tax on certain benefits.

How high should a mobility budget be?

Firstly, the amount of the mobility budget can be negotiated individually between the company and the employee, without specific legal requirements or minimum amounts. As a rule, companies set budgets of between 100 and 300 euros per month per employee, but the actual amount depends on factors such as the size and structure of the company, the number of employees and the industry. The individual mobility needs of employees also play a key role. Many companies set the mobility budget at around 1-2 per cent of an employee's gross annual salary to ensure that the costs of mobility are adequately covered.

The amount of the mobility budget varies depending on the employer, based on the level of employment and requirements. Companies can differentiate themselves in the competition for skilled labour by introducing a mobility budget, and the amount of the budget also plays an important role here.
Granting a mobility budget of 50 euros is attractive from a tax perspective. This is because up to an amount of 50 euros, the mobility budget can be deducted as a benefit in kind and is therefore tax-free. Amounts in excess of this are taxed at a flat rate of 30 per cent.

Factors that influence the amount of the mobility budget:

  • Tax advantages, e.g. tax-free 50 euro benefit in kind
  • Company size and structure
  • Company location
  • Number of employees
  • Industry
  • Remuneration level
  • Job level / seniority
  • Individual mobility needs

Illustration of a girl riding a rocket.
Are you looking for more info about the 49 euro ticket as a job ticket? 

Our mobility experts at NAVIT would love to share their knowledge with you about the new mobility product. Feel free to get in touch with us!

Get info

Mobility budget or company car?

A mobility budget offers various advantages compared to the classic company car. It gives employees more flexibility in their choice of transport, promotes environmentally friendly mobility and can be more cost-efficient.
The mobility budget can offer attractive options for all employees. For those entitled to a company car, an incentive can be created to ...

  • downsize their company car (downsizing),
  • electrify it (e.g. budget for reducing CO2 emissions),
  • use it more efficiently or
  • even get rid of it altogether.

Employees who are not entitled to a company car have the option of using the mobility budget provided for individual mobility or for travelling to and from work. Employees can benefit from tax savings when using the mobility budget, as public transport, for example, is tax-free.

How high are mobility budgets? Example of "company car downsizing"

Employees who are given a company car do not have to give it up straight away. Also, depending on the company structure, not all company cars can be replaced by a mobility budget. A mobility budget can act as a supplement to the company car. This gives employees the opportunity to opt for a smaller, more efficient and cheaper vehicle - for example an electric vehicle - and in return receive an additional mobility budget corresponding to the amount saved. This practice is often referred to as downsizing. It involves replacing the company car with a smaller and cheaper model, while the mobility budget provides additional flexibility. This allows companies to reduce costs without giving up the benefits of a company car altogether.

How high is the mobility budget? Example of "company car replacement"

If the conditions in the company are right for replacing the company car with a mobility budget, the framework conditions should be defined. It makes sense to stipulate this in the existing car policy or in a newly formulated, more comprehensive mobility policy: Who can use it for which journeys and to what extent?

For employees entitled to a company car, the reference rate of the vehicle to which they are entitled can be used as a starting point. If the company wants to achieve savings with the mobility budget, the sum can also be set below the reference rate. The levels at which it is offered depend on how many employees are to benefit from it or are to be motivated to travel to work by alternative means of transport other than the car. In this way, more employees can be reached than just those who are eligible for a company car. This controls corporate mobility and the carbon footprint.

Companies should also clarify how to deal with residual amounts left over at the end of the month. There are also various scenarios that a company should run through in order to find the best possible solution. On the one hand, the private use of residual amounts can be permitted in order to reward a particularly economical use of mobility. Another option is to invest the unused budget in selected sustainability projects.

How to successfully introduce it in the company

Careful planning and communication are required for the introduction of a mobility budget to be successful. Companies should inform their employees transparently about the benefits and address any concerns. It is also crucial that the budget is customised, taking into account the needs of the employees. Integration into operational processes and the provision of suitable platforms or tools for easy administration are also critical factors for success.

This 10-step guide provides practical tips for smooth implementation in the company.

Sign up for our newsletter!

Sign up for our newsletter to receive the latest insights about our mobility solution products like the 49 eurojob ticket.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form
Stefan Wendering
Stefan is a freelance author and editor at NAVIT. Previously, he worked for startups and in the mobility sphere. He is an expert in urban and sustainable mobility, employee benefits, and New Work. In addition to creating blog content, he also produces marketing materials, taglines, and website content, as well as case studies.
Rydes violet card.
This is some text inside of a div block.
Rydes red card.
This is some text inside of a div block.
Rydes red card.
This is some text inside of a div block.
Rydes red card.
This is some text inside of a div block.

More mobility topics

January 31, 2024
What is micromobility?

What is micro-mobility and which vehicles are included? The contribution of micromobility to the mobility transition.

January 31, 2024
From car policy to mobility policy

Why companies need to rethink corporate mobility and how the transition to a mobility policy can succeed.

January 31, 2024
Virtual credit card as a mobility budget card

How does a virtual credit card work and what advantages does it have as a mobility budget card?

January 23, 2024
The difference between mobility budget, mobility allowance, mobility lump sum and mobility bonus

Employers have various options for supporting their employees' mobility. What is the difference between a mobility budget, mobility allowance and mobility bonus?

January 17, 2024
What is the benefit in kind?

How does non-cash remuneration affect salary and how are non-cash benefit done in payroll?

January 15, 2024
How does the mobility budget work?

The implementation of a mobility budget works best with a mobility platform

January 12, 2024
Mobility budget 2024: How high should it be?

The amount of a mobility budget depends on these factors.

January 9, 2024
What is Shared Mobility?

What is meant with shared mobility? What sharing services are out there? How does it work?

January 5, 2024
Comparison of five popular employee benefits for 2024

How to choose the right benefit for your team. Five popular employee benefits and their providers compared.

December 12, 2023
Employee Benefits Glossary

The most important terms and definitions: Everything you need to know about employee benefits for your company.

December 7, 2023
New Work Glossary

The most important terms and trends from the world of New Work.

November 29, 2023
New mobility explained: What is the difference between car sharing, ridehailing, ridesharing, ridepooling and carpooling?

When and for whom are they best suited? An overview of the individual concepts.

November 24, 2023
Company bike leasing: compare providers in 2024

Lease a bike or e-bike for employees: What is important to know? Key criteria for a provider comparison.

November 17, 2023
New Mobility Glossary

New Mobility: Trend terms and definitions. Everything you need to know about the latest mobility and transport topics.

November 9, 2023
E-bike leasing for employers

E-Bike leasing for employers: Is it worth it? The benefits of E-Bike leasing for companies and employees.

November 8, 2023
Mobility Budget in European Countries

How is the mobility budget implemented in other European countries? A comparison.

November 3, 2023
Why employee benefits for mobility are becoming increasingly popular

Why are employee benefits relevant for companies and why do mobility benefits become popular?

October 27, 2023
Advantages of a mobility budget for employee mobility compared to travel expense management

When it comes to business trips, a mobility budget can have advantages over a classic travel expense management.

October 26, 2023
Job ticket, company bike and company car - Which benefits tax-free at the same time?

Job ticket, company bike and company car at a glance - Which allowances can employees use at the same time?

September 27, 2023
Tax-free fuel voucher & fuel card: advantages, use & non-cash benefit in Germany for employers

Tax-free fuel voucher & fuel card: advantages, use & non-cash benefit in Germany for employers

September 26, 2023
Bike leasing, bike subscription and bike sharing in Germany at a glance

The future of bicycle mobility. Bike leasing, bike subscription and bike sharing in Germany quickly explained.

September 25, 2023
Comparison: Car subscription, leasing or long-term rental as an alternative to a company car

Comparison: Car subscription, leasing or long-term rental as an alternative to a company car in German

September 18, 2023
How to choose the right tax scheme for the mobility budget: A guide for internal communication

how can you make the complex topic of taxation understandable to your finance department? In this article we show you how to make the right choice.

September 18, 2023
Mobility budget: tax models, means of transport & recommendations Germany

We provide tax optimisation tips that employers and employees should consider when applying mobility budget in Germany

September 13, 2023
Corporate benefits & employee offers: 4 ideas for modern employee benefits 2024 in Germany

Corporate benefits: 4 ideas for modern employee benefits 2024 in Germany

September 12, 2023
Company bike and bike leasing in Germany explained

We explain how employers can provide their employees with a company bike tax-free through a bike lease program in Germany

September 11, 2023
Mobility budget providers in the German market 2024: Mobility budget platforms vs. expense and benefits platforms compared

What mobility budget providers are there on the market? A comparison of mobility budget platforms vs. expense and benefits platforms

September 7, 2023
Mobility budget: salary increase or salary conversion?

Mobility budget: salary increase or salary conversion?

September 4, 2023
How does carbon offsetting work for companies?

More companies are committed to effective climate protection. This also applies to mobility. We explain how this works in Germany

August 28, 2023
Travel allowance, benefit in kind and job ticket in 2023 - information for employers

June 13, 2023
Deutschlandticket, job ticket and mobility budget in comparison

In depth comparison between Deutschlandticket, jobticket and mobilitybudget.

April 26, 2023
For whom is the 49 Euro Deutschlandticket worthwhile?

Find out who can benefit most from this ticket and for whom a job ticket is worthwhile in this article.‍

February 22, 2023
The 49 Euro Deutschlandticket Explained & Jobticket Ready for Companies

Read all pros and cons of the new ticket and how the 49 Euro Deutschland ticket affects the Job ticket in Germany

February 20, 2023
Public transport tickets allowance or public transport ticket subsidy in Germany explained

January 16, 2023
The car fleet and leasing alternative: car subscriptions

What are the pros and cons of a car subscription? Is it a viable alternative to traditional leasing and fleet management?

January 6, 2023
CO2 reporting obligation for companies from 2023 in Germany

CO2 reporting, CSRD corporate social responsibility for companies from 2023 in Germany. Here are the new CSRD rules & requirements

December 14, 2022
Mobility budget solutions comparisons

How can the mobility budget for employees be implemented in your company? What are the current solutions? What do you have to pay attention to with the individual mobility budget providers? We will explain the various mobility solutions to you.

December 9, 2022
Mobility budget instead of company car

We show you the advantages of a mobility budget as an employee benefit that can help make a difference in your mobility management. 

November 28, 2022
Fuel & Charge card explained

This article is to inform you about the fuel & charge card and what the advantages of a hybrid card are.

November 22, 2022
Travel allowance Germany explained

Here you find all the info about travel allowances (Fahrkostenzuschuss) and taxation in Germany.

November 15, 2022
The job ticket as mobility benefit

In this article we will tell you about the job ticket. What is it? What do you have to consider in terms of tax law? How does it relate to the mobility budget?

November 11, 2022
Bike leasing explained

This article is all about bike leasing as a supplement to the mobility budget. How does bike leasing work? What are the benefits of company bikes? What's the deal with salary conversion?

November 9, 2022
Mobility management explained

How can the mobility budget be integrated into corporate mobility management? Or can it even replace it? We'll clarify that in this article.

November 2, 2022
PT ticket reimbursements explained

Read all information about mobility budget and ticket reimbursement usage. How do you reimburse your ticket? Which tax implications apply.

November 1, 2022
The mobility budget taxation explained

Mobility Budget Taxes, Taxation and Non-cash remuneration. We will give you a brief overview of how the individual means of transportation are taxed.

October 25, 2022
The mobility budget explained.

The mobility budget explained. What is a mobility budget? Which advantages does it have? How does it work? We give you all the answers.