Pay for your new electric bicycle or speed pedelec through your bicycle allowance

Regulations regarding the bicycle allowance in Belgium

Before diving into the simulation, it is important to outline the legal framework and the rules regarding the bicycle allowance in Belgium.

Since 1 May 2023, a bicycle allowance has become mandatory for all employees. Whereas previously it was a benefit granted by the employer to the employee, it is now an obligation. Figures show that around 20% of cycling employees in Belgium receive a bicycle allowance.

A bicycle allowance is very advantageous for employees because it is exempt from income tax and social security contributions. Please note: the exemption applies up to an amount of 0.27 euros per kilometer (assessment year 2024, income 2023). For assessment year 2023 (income 2022), the applicable amount was 0.25 euros.

If the bicycle allowance is not specified in the sectoral collective labor agreement, the employer may determine the amount themselves. If the employer grants a higher kilometer allowance than 0.27 euros per kilometer, the remaining amount is taxable as professional income.

Simulation of the bicycle allowance for commuting

To simulate your bicycle allowance, a few elements need to be clarified: your kilometer allowance, the number of days you cycle to work, and the distance you travel daily from home to work. In our simulation, we use the following data:

• Bicycle allowance: 0.27 euros per kilometer traveled
• Distance to work: 20 kilometers
• Number of days cycling to work: 10 per month

If we put the above data into a calculation, we obtain the following result:

€0.27/km × 40 km (round trip) × 10 days/month = 108 euros

In the above calculation, you have covered 400 cycling kilometers in one month. In that case, you are entitled to a maximum bicycle allowance of 108 euros per month tax-free. On an annual basis, this amounts to an additional income of 1,296 euros.

Savings on fuel

As you can see, you can earn a substantial amount by commuting to work by bicycle. But that is not all: by cycling to work, you not only earn money, you also save significantly on fuel for your car.

To illustrate this, we continue with the above data and assume that you drive 10 days per month less to work. To calculate how much fuel you save, we use the following data:

• Car: Volkswagen Golf 1.5 130 hp Comfortline from 2019
• Average consumption: 6.2 l/100 km (brochure states 5.0 l/100 km)
• Distance to work: 20 kilometers
• Number of days cycling to work: 10 per month
• Fuel price (petrol 95): 2.06 euros/liter (July 2022)

If we put the above data into a calculation, we obtain the following result:

(6.2/100) × 400 km × 2.06 euros/l = 51.09 euros per month

By not driving to work 10 days per month, you could save 51.09 euros per month. On an annual basis, this amounts to a saving of 613.18 euros.

Recovering the cost of your bicycle after 3 years

If you live 20 km away from your workplace, chances are that you would opt for a speed pedelec (with pedal assistance up to 45 km/h). A solid speed pedelec, for example a Stromer ST1, costs approximately 5,000 euros.

By cycling to work 10 days per month, you receive an annual bicycle allowance of 1,296 euros. If you add the annual fuel savings of 613.18 euros, this results in a total annual benefit of 1,909.18 euros . This means that you can recover the 5,000-euro investment in your speed pedelec in less than three years.

Finance your bicycle with an interest-free bicycle loan from Cyclobility

Would you like to buy a new (electric) bicycle or speed pedelec but spread the purchase cost over several years? That is possible. For this purpose, Cyclobility has introduced an interest-free bicycle loan. It is a bicycle loan for which we cover the interest, so that this cost is eliminated for you. As a result, we offer the cheapest bicycle loan in Belgium . There is one condition: you must purchase your bicycle in one of our bicycle shops .

Major impact on the environment and your health

Cycling to work not only has a major impact on your wallet, but also on the environment. By commuting by bike, you significantly reduce CO₂ emissions, traffic congestion, and your ecological footprint.

Cycling also has a positive effect on your health. Research by the Attentia Business Intelligence Team shows that employees who cycle to work report sick less often than colleagues who never commute by bike. Among frequent cyclists (people who cycle to work more than six months per year), short-term absenteeism is only 2.74%.

Would you like your company to make a positive impact on society as well? Then start with bicycle leasing .