The cost of the bike lease is deducted from the employee's salary. Depending on the collective labor agreement, this can be done through one or more gross salary components (e.g. gross salary, end-of-year bonus or bonus). Since bike leasing is exempt from employer contributions, a budget is calculated with the total wage cost including employer contributions. The cost of the bike lease is deducted from that budget.
Bike leasing is exempt from employer contributions and as an employee you do not have to pay any social security or income tax. As a result, the net impact on the employee's salary can be up to 40% lower than the effective cost of the bicycle.
- Calculator
- Practical example for a bicycle lease of €100/month including VAT.
Bike lease €100/month incl. VAT Catalog price bike: €2400 incl. VAT |
Without bike leasing |
With bike leasing |
Payroll |
€3250 |
€3250 |
Bicycle Leasing |
€0 |
-€100 |
New gross wage cost |
€3250 |
€3150 |
NSSO contribution employer |
€650 |
€630 |
Gross salary |
€2600 |
€2520 |
NSSO employee contribution |
€339,82 |
€329,36 |
Taxable Base |
€2260,18 |
€2190,64 |
Special contribution |
€23,11 |
€23,11 |
Net salary |
€1778,31 |
€1729,40 |
Net impact bicycle leasing/month |
|
€48,91 per month |
Total net cost of bicycle leasing |
|
€1760,76 |
Be aware: The (para)fiscal benefits only apply if the employee regularly uses the bicycle for commuting.
In some sectors, salary exchange is not possible (see next question).