The bicycle allowance: what is it?
The bicycle allowance is a per-kilometre allowance paid by an employer to employees who (partly) commute by bicycle. The government wants to stimulate people to use bicycles for commuting by providing the kilometre allowance.
This type of bicycle allowance is really motivational and does make a difference: find out how in ‘Wesley’s cycling motivation’.
How much is the 2024 bicycle allowance?
The bicycle allowance is currently (January 2024) set at €0.35 per kilometre and is statutorily tax-free and exempt from social security contributions. How much the maximum tax-exempt bicycle allowance is can change annually, based on general index figures. Whether your employer applies the (annual) indexation is their choice.
The bicycle allowance is legally exempt from taxes and social security contributions, but is subject to two important conditions:
- The cap for the tax-free kilometre allowance is set at €3,500 per year.
- The tax exemption for the kilometre allowance only applies to employees whose professional expenses are calculated on a flat-rate basis. If you choose to deduct your statutory professional expenses through your tax return, you are not entitled to the exemption.
A lot of employees are noticing quite a nice net amount appearing on their payslips every month, through the bicycle allowance. It’s a nice bonus! Especially for those with lease bicycles. Because if you travel enough bicycle kilometres per month, you can even fully recoup the cost of a (lease) bicycle.
Is a bicycle allowance compulsory?
As an employee, you are naturally curious about whether you are entitled to a bicycle allowance. Since May 2023, all private and non-profit sector employers have been required to pay a bicycle allowance to employees who regularly cycle to work.
Whether it’s for your own bicycle, a lease bicycle or a company bicycle: it applies. And in case you were wondering: it also makes absolutely no difference if you’re riding a zippy road bike, practical cargo bicycle or a high-speed pedelec. The bicycle allowance is for every type of bicycle.
How much the basic amount per kilometre travelled is, depends on which collective agreement you are covered by. Get more detailed information on the bicycle allowance obligation here.
Earn back your lease bicycle through your bicycle allowance
Did you know that you can earn back the lease price of your bicycle with your bicycle allowance? Suppose you lease a bicycle for €84 net, per month. And on that bicycle, you travel 20 kilometres to and from work every day, for a year. You’ll get the maximum bicycle allowance of 0.35 cents per kilometre for those 20 kilometres.
210 (days) x 20 (km per day) x 0.35 (cents) = €1,470 per year or €122.50 per month
In this case, your bicycle allowance would even exceed the lease price of your bicycle!
Simulate the lease price of the bike you want through our calculator.
Interested in bicycle leasing through your employer?
All fired up about leasing a bicycle and enjoying the many advantages of bicycle leasing? Especially interested, now that you know you can recoup some or all of those advantages through your kilometre allowance?
Find out everything you need to know about leasing bicycles through your employer!
Frequently asked questions about the bicycle allowance
Can you get a bicycle allowance if you have a company car?
We are unable to provide a definitive answer to that question. You can often get a bicycle allowance if you have a company car, but everything depends on what the collective agreement of your company or sector says about this.
For example, a bicycle allowance may be refused to someone who has a company car and works within PC111, because that collective agreement allows employers not to give a bicycle allowance to employees with a company car.
If your collective agreement allows it, you can agree with your employer which days or months you will cycle to work and get a kilometre allowance for those kilometres. In that situation, it is important that there is some regularity to your commuting, so you can make clear arrangements with your employer.
Can you get a bicycle allowance if you cycle to and from work several times a day?
Indeed, in some cases, the employer may reimburse multiple round trips per day. For example, suppose you go home for lunch every day, your employer can give you a bicycle allowance for those extra trips.
Can the bicycle allowance also be used for work travel?
As an employer, you can also use the bicycle allowance for work travel, even if these are done with a company bicycle. For this use, the bicycle allowance is 100% deductible, but it will incur social charges.
What if my employer gives an amount higher than 0.35 euros as a bicycle allowance?
Employers can always give a higher amount than the statutorily tax-free amount, but in that case, the remaining amount is taxable as professional income. For example: If the employer provides a bicycle allowance of €0.20 per kilometre, it is completely tax free. If the employer provides €0.40 per kilometre, the first €0.35 is tax free, but the remaining €0.05 is taxable (it is treated as salary).
Want to get tax-advantaged bicycle leasing on top of your bicycle allowance?
In addition to the net benefit of your bicycle allowance, employees can benefit even more by opting for bicycle leasing. Find out whether leasing a bicycle through your employer is an attractive option for you. Oh, and hey: don’t forget that you can recoup all or part of your lease price through your kilometre allowance!
Discover bicycle leasing
