That’s how it works
- You offer your employee a company bicycle via leasing
- The employee finances the bicycle lease through his or her salary. So the lease cost is not a real cost for your organisation.
- Because your organisation does not have to pay an employer’s contribution on the gross salary that your employee uses to finance his bicycle, this results in savings.
- You can then pass on these savings to the employee as a contribution to the lease amount. This is what the budget-neutral formula is all about!
The big advantage
You can leave your employees 100% free in the choice of their bike and it costs nothing extra to your organisation.
In addition, the piece of gross pay that the employee uses to finance the bicycle is also exempt from social security and withholding tax.
This means that the employee pays up to 60% less than the total lease amount in net terms.
Budget neutral for your company and advantageous for the employee!