Each company can fill out and shape the scheme itself. Are you unable to figure this out? We will be happy to give you advice on how you can best offer the scheme. To give you an idea of what that might look like, we provide some examples below:
- The company offers the bicycle leasing plan on a cost-neutral basis. This is possible because the savings on social security contributions (on average €25) can be passed on to the employee by reinvesting them in the monthly lease costs. That way, the employer does not have to incur additional costs as a result of offering the company bike. Experience shows that even the cost-neutral offering is a nice incentive for the employee to take a company bike.
- The company incentivises the arrangement by paying part, or all, of the monthly lease cost. This is the most common way of offering the bike plan. On average, companies contribute about €50, including the €25 savings on social security contributions. Your colleague pays 7% additional tax each month and possibly the remaining portion of the lease cost. This can be offered as a fringe benefit, as part of the mobility budget or from the lease car budget.
The bottom line is that your cycling colleague may have to deal with two expenses:
- The monthly lease expense (plus service and maintenance costs).
- 7% additional taxable income. This expense is always for the employee, as compensation for the private use of the bike.