Is a cycle allowance obligated?

Am I obligated to give my employees a bike allowance? That’s a question we get a lot. Even though most employers give one, the answer appears to be ‘no’. For many employees, such a reward is mostly not even the motivation to go to work by bicycle.

 
Wim Roels (Cycle Valley): “Every day I see people travel to their work by bike. Both normal bike and e-bikes are commonly used.” And that’s very smart, since there are a lot of benefits for bikers. It’s cheaper, healthier and better for the environment. That’s why more people apply for a ‘cycle kilometer allowance’. Some people make up to €100 a month! “But without the allowance, they would still travel by bike. The traffic jams aren’t worth their time.”

“Most employees use their bike because it’s healthy and it saves time. They don’t care about the allowance.”

Also for speed pedelecs?

For longer distances, a lot of people use fast e-bikes or ‘speed pedelecs’. These go up to 45km/h. At the moment, it isn’t known whether a bike allowance applies for these. But soon speed pedelecs will get regulated, and employees with a speed pedelec will be able to apply for an allowance.

Not required, but tax free

Belgian companies aren’t obligated to give a cycle allowance, even though it’s mostly included in CBA’s. Allowances up to 0,23 euro per kilometer are tax free. Furthermore, all costs related to bike promotion are 120% deductible for companies.

More and more companies think about their corporate image, and look for green transport solutions for their employees. Cycle Valley is your full service partner for company bikes. We lease, sell or rent electric bikes and take care of the insurance, maintenance and fleet management.

Interested in a green solution for your company? Check the advantages here.