With a company bike, both employers and employees can benefit from tax advantages and net wage optimization. Since sustainable business and employee retention are becoming increasingly important, the company bike offers an attractive solution for companies and their employees.

What is a company bike and how does it work?

A company bike is the equivalent of a company car, but much more environmentally friendly, cost-effective and flexible. It allows you as an employer to provide your employees with a bicycle or e-bike that they can use both for work and private purposes. A company bike offers enormous advantages, especially in cities or metropolitan areas: employees are independent of traffic jams, parking problems and rising fuel prices.

For employees: You can use a high-quality bicycle without worrying about the purchase costs and use it both privately and professionally.

For employers: With a company bike, you not only save costs compared to company cars, but at the same time promote the well-being and motivation of your employees.

Tax advantages and net wage optimization: How employers and employees benefit

A key advantage of the company bike is the tax benefit. Since 2020, the so-called 0.25% rule has applied to bicycles and e-bikes, which significantly reduces the monetary benefit. This benefit must be taxed by the employee, but the burden is minimal.

For the employee: More net from gross

Instead of using part of your salary for an expensive bike, the monetary benefit is taxed according to the 0.25% rule. For example, with an e-bike worth 4,000 euros, you only have to declare 10 euros per month as taxable income. This means you can use an expensive, modern bike at a fraction of the cost that you would pay privately.

For the employer: Lower non-wage labor costs

You can finance the company bike through a leasing contract , and the leasing rate is deducted directly from the employee's gross salary. This reduces the employee's taxable income, which means savings on social security contributions for both you as the employer and the employee. You also benefit from tax advantages, as the leasing rates are deductible as business expenses.

Example: How the provision of a company bicycle works in practice

Let's assume one of your employees earns 3,000 euros gross per month. You decide to give him an e-bike worth 4,000 euros, with a monthly leasing rate of 100 euros. These 100 euros are deducted from the gross salary, so that only 2,900 euros serve as the basis for income tax. At the same time, the monetary benefit of 10 euros (0.25% of the purchase price) is added to the taxable income.

Result: The employee has more money in their pocket because their salary is taxed less on the company bike, and you as the employer save social security contributions on the difference. At the same time, you have contributed together to promoting healthy and sustainable mobility .

Further advantages of the company bike for employees

In addition to the financial savings, a company bike offers numerous other advantages that make it an attractive benefit:

• Health benefits: Regularly commuting by bike keeps you fit, reduces stress and promotes health . In the long term, it can even reduce the number of sick days employees take.
• Flexibility and freedom: With an e-bike or bicycle you are independent of public transport and traffic jams. In the city you can often travel faster than by car.
• Private use: Unlike a traditional company car, there are no restrictions on the private use of a company bike. Whether you use it to go shopping, to the gym or on holiday - the bike is also available to you outside of working hours.

Benefits for employers: More than just cost savings

Providing a company bike offers you as an employer more than just financial benefits. You can also use it to positively influence the company culture and employer branding.

• Promote sustainability: By providing company bicycles, you are making an active contribution to environmental protection and positioning your company as sustainable and future-oriented.
• Employee retention: An attractive company bike offer can be an important argument for attracting and retaining talent. Younger employees in particular value environmentally friendly mobility options and attach great importance to employers who take sustainability seriously.
• Increase motivation and satisfaction: Employees who regularly commute to work by bike are proven to be more motivated, fitter and more balanced. This can have a positive effect on productivity and the working atmosphere.

How does the process of obtaining a company bike work?

Most company bikes are handled through leasing models . As an employer, you enter into a contract with a provider who provides the bikes. The employee selects his or her bike from the selection and the leasing rate is deducted directly from the employee's gross salary.

The contract term is usually three years. After the contract expires, the employee can often buy the bike at a reasonable residual value or upgrade to a new model. Maintenance and insurance are also covered by the leasing model in most cases, so the employee does not incur any additional costs.

Conclusion: Company bikes as a win-win situation for everyone involved

Company bikes are a modern, environmentally friendly and cost-saving alternative to company cars, which offers significant advantages for both employers and employees. While you as the employer benefit from tax savings, lower non-wage labor costs and a better image, your employees receive a high-quality bike that they can use flexibly and inexpensively.

Overall, the model is a perfect way to promote employee health and satisfaction while reducing costs. Company bikes therefore offer a win-win situation that has a lasting positive impact on both the working atmosphere and the environment.