The 11 most frequently asked HR questions about the bicycle allowance

The bicycle allowance: an attractive net benefit for employees and a hot topic among employers and HR managers. Do you also have questions about the bicycle allowance? Then you’ve come to the right place, because in this article we answer HR managers’ most frequently asked questions about the bicycle allowance.

TL;DR: what you need to know in 2026

• The bicycle allowance is mandatory in the private sector (both for-profit and non-profit) for employees who regularly cycle to work and do not have a company car. However, the amount varies by sector or company.
• A sectoral or company-level collective labour agreement determines the amount and conditions. If no arrangement is in place, collective labour agreement No. 164 applies: €0.30 per kilometre (indexed amount since 1 January 2026), for a maximum of 40 kilometres for the return journey per day. This amount is indexed annually.
• The maximum bicycle allowance exempt from tax and social security contributions in 2026 is €0.37 per kilometre, with an annual cap of €3,700 per employee (indexed amounts since 1 January 2026).
• Only commuting kilometres actually cycled qualify. Keeping accurate records is therefore important.
• For employees, the allowance is only tax-free if they opt for flat-rate professional expenses in their tax return. If they deduct their actual expenses, the favourable tax treatment no longer applies.

Want to read more about the mandatory bicycle allowance? Group S has written a clear legal article about it.

2. How much bicycle allowance do you have to pay as an employer?

That depends on the agreements in your sector or company. Is there a collective labour agreement on the bicycle allowance for your joint committee? Then the amount and conditions set out in that sectoral collective labour agreement apply. For example, it may determine how much your employees receive per kilometre and the maximum distance per day that qualifies. You may also pay more than the amount stated in the sectoral collective labour agreement.

The bicycle allowance per kilometre may also be determined at company level. But bear in mind:

• Is there already a sectoral arrangement? Then the bicycle allowance and maximum distance may not be lower than what has been agreed at sector level (the agreements must therefore be at least as favourable). You may also pay more than the amount stated in the sectoral collective labour agreement.
• Is there no sectoral bicycle allowance? Then a company-level collective labour agreement can set its own amounts and conditions. In that case, there is no statutory minimum amount, but a company-level collective labour agreement is negotiated with the trade union and must also be signed by the union. In practice, a trade union is therefore unlikely to agree to less than €0.30 per kilometre, the amount set out in collective labour agreement No. 164.

Has nothing been agreed on the bicycle allowance at either sector or company level? Then collective labour agreement No. 164 applies. In 2026, the bicycle allowance under this agreement is at least €0.30 per kilometre (this amount is indexed annually), for a maximum of 40 kilometres for the return journey per day.

The maximum tax- and social-security-exempt bicycle allowance in 2026

The maximum bicycle allowance exempt from tax and social security contributions in 2026 is €0.37 per kilometre, with an annual cap of €3,700 per employee. That is the maximum you can pay free of tax and social security contributions. Anything above that €0.37 per kilometre is taxed at progressive rates and is subject to social security contributions.

Why pay more than the minimum amount?

For several reasons.

1. It is an attractive net benefit for employees. As long as the allowance does not exceed €0.37 per km (the maximum tax-free amount), it is not taxed and employees do not have to pay social security contributions on it either.
2. Paying a bicycle allowance is also tax-efficient for your company. You can read why below, in question four.
3. The attractive net benefit also encourages employees to commute by bicycle.
4. More people cycling to work also means fewer parking problems.
5. Cycling reduces stress and gets people moving. So you are also investing directly in healthy employees.

Plenty of reasons, then, to pay your employees a bicycle allowance of €0.37 per km.

‍3. Which employees are entitled to a bicycle allowance?

The bicycle allowance applies to employees who regularly cycle to work. The type of bicycle does not matter (electric bicycle, speed pedelec, city bike…). Nor does it matter whether the employee rides a lease bicycle, its their own bicycle or a company bicycle.

Tip: always check the sectoral or company agreements, which may include additional conditions.

4. How much does the bicycle allowance cost you as an employer?

As an employer, you may claim the bicycle allowance of up to €0.37 per km as a 100% deductible business expense. This reduces the company’s profit and therefore its corporation tax, providing a considerable benefit for the company.

What about the bicycle allowance and social security contributions payable by the employer? Here too, the arrangement is attractive: as an employer, you do not pay employer social security contributions (NSSO) on the bicycle allowance as long as you stay within the maximum exempt amount (in 2026, this is €3,700 per year per employee). If you pay more, you must pay tax and social security contributions on the portion above the cap.

So, is the bicycle allowance advantageous for the employer? Absolutely. The bicycle allowance allows you to encourage your employees to cycle to work in a tax-efficient way. No reason not to do it, right?

5. How often does an employee have to cycle to work to be entitled to a bicycle allowance?

The employee must use its bicycle regularly for commuting. There is no general minimum number of cycling days that applies to every employee and employer. In fact, there is currently no ready-made legal answer to the question of what counts as ‘regular’ use of a (lease) bicycle for commuting. Nor is there any consensus on exactly how to prove it.

As an employer or HR professional, you determine the minimum use of a (leased) bicycle by your employees yourself. Most of our customers opt for the 20% rule. This means that full-time employees are expected to cycle to work at least once a week.

But you can also define it in other ways. For example, choose a number of days per month. Or adjust cycling frequency according to the season. After all, in summer everyone enjoys hopping on its bicycle now and then, while the cold winter months are often less inviting for cycling. How do you keep track of all this? You can find out in question 6.

6. How do you record kilometres cycled?

There is no statutory arrangement for keeping track of the number of kilometres your employees cycle. At o2o Bicycle Leasing, we see that customers often choose one of the two options below:

• Digital records of the number of kilometres cycled, linked to an electronic access control system or cycling calendar. A few ideas:
  • Record trips using a logbook or platform.
  • Link bicycle parking badge data to trips or carry out regular spot checks.
  • Have employees record their trips in an activity app such as Strava. If you choose this option, be sure to carry out a privacy assessment beforehand (including GDPR).
• Have employees sign a one-off declaration on honour.

Accurate record-keeping is important

Ensure that employees accurately record the kilometres they cycle to and from work. This is important not only when granting the bicycle allowance, but also when you, as an employer, provide employees with a lease bicycle. In that case, you must be able to demonstrate to the tax authorities that the lease bicycle is actually used for commuting. Only then is it exempt from a benefit in kind (BIK). If this cannot be demonstrated, tax and social security contributions must be paid on the actual value of the lease bicycle.

7. Can you combine other mobility allowances with the bicycle allowance?

Usually, yes. For example, an employee can cycle one day and use public transport or a (company) car on another day.

Bear in mind, however: some collective labour agreements state that a company car cannot be combined with a bicycle allowance. Is it a company-level collective labour agreement? Then it can only be amended through renewed consultation with the trade union delegation or consultative bodies within the company, and not unilaterally by the employer. So always check the specific agreements in your own collective labour agreement.

8. Does the bicycle allowance only apply to the shortest route to work?

No, because the shortest route is not always the safest route. Or your employee may take a small detour to drop the children off at school. Even if your employees do not cycle to work via the shortest route, they can claim the bicycle allowance for the small detour.

You can also set a maximum number of kilometres for which you pay a bicycle allowance. Each joint committee can decide this for itself.

9. Can you use flat-rate allowances?

No, using flat-rate allowances for the bicycle allowance is not possible, because the bicycle allowance is only exempt from tax and social security contributions if it is specifically granted for the use of a bicycle for commuting. That is why the bicycle allowance must also be calculated on the basis of the number of kilometres actually cycled.

10. What should your employees bear in mind when completing their tax return?

If employees receive a bicycle allowance of €0.37 per km, the bicycle allowance is exempt from tax up to a maximum amount of €3,700 (income year 2026, tax assessment year 2027). Does the allowance per kilometre or on an annual basis exceed that limit? Then it is not the entire allowance that is taxed, but only the portion above it. The excess portion is treated as ordinary pay: it is taxed at the employee’s progressive tax rates and social security contributions (13.07%) are deducted from it.

The exemption only applies if the employee opts for flat-rate professional expenses in its tax return.

Does the employee opt for actual professional expenses? Then the bicycle allowance received is taxed as professional income. In that case, the allowance is therefore not tax-free.

11. Are employees entitled to a bicycle allowance within the mobility budget?

Generally not. When an employee joins the federal mobility budget scheme, the bicycle allowance comes out of that available budget. The employer pays the allowance, after which the same amount is deducted from the mobility budget.

There is, however, an exception. An employee can continue to receive the bicycle allowance on top of the mobility budget if, before switching, they:

• had been leasing a bicycle for at least three months before joining the mobility budget scheme;
• were entitled to both a company car and a bicycle allowance;
• were already receiving a bicycle allowance in addition to the mobility budget.