First you add 7% of the retail price of the bicycle to your income. After that, payroll tax will be withheld from this. This addition is also stated on your pay slip.
Example:
Suppose the new price of your chosen bicycle is € 2,500 and the annual addition is € 175. If you divide this amount by 12 (months), you arrive at € 14.58 in addition per month. You add this amount to the gross income. This means that tax is also paid on this monthly. If you then calculate this again, that extra tax amounts to about € 5 per month.