How much do I save with a company bike?

Savings depend on your salary, tax class, and bike price. Typically you save 15-40% compared to a private purchase. For an e-bike at €3,000 RRP with a €3,500 gross salary in tax class I, effective monthly costs are around €55-70 instead of the full lease rate of approx. €109. Over 36 months, this means savings of several hundred euros compared to the retail price.

What is the benefit-in-kind for company bikes?

Since 2020, the benefit-in-kind for bicycles and e-bikes (pedelecs up to 25 km/h) through salary sacrifice is only 0.25% of the RRP per month. For a €3,000 bike, that's €7.50 monthly that must be taxed additionally. S-pedelecs (over 25 km/h) are treated like company cars with the 1% rule. If the bike is provided on top of salary (no salary sacrifice), the benefit-in-kind for regular bikes and e-bikes is zero.

What happens when the lease ends?

After the lease term (usually 36 months), you have three options: 1) Buy the bike at residual value (typically 18% of RRP, e.g. €540 for a €3,000 bike). 2) Extend the lease at reduced terms. 3) Return the bike. Most users choose to buy, as the residual value is well below the actual market value.

Is a company bike worth it on a low salary?

Yes, you can still save even on a lower salary, though the tax savings are smaller. From around €2,000 gross salary, company bike leasing is usually worthwhile. Note however that salary sacrifice reduces your social-insurance-liable income, which can have a minor long-term impact on pension and sick pay entitlements.

What is the difference between E-Bike and S-Pedelec for company bikes?

E-bikes (pedelecs) assist up to 25 km/h and are classified as bicycles – no license, no mandatory insurance, and only 0.25% benefit-in-kind. S-pedelecs assist up to 45 km/h and are classified as mopeds – requiring a license plate, insurance, and 1% benefit-in-kind (like a company car). From a tax perspective, e-bikes are significantly cheaper.

Can I use the company bike privately?

Yes, private use is explicitly allowed and encouraged. This is one of the major advantages over traditional company car arrangements. You can use the company bike for commuting, shopping, sports, and leisure – without additional costs or restrictions.

Does salary sacrifice affect my pension?

Yes, salary sacrifice reduces your gross income subject to social insurance. This means you pay less into the pension system, which can affect your future pension entitlements. However, with a lease rate of €100 monthly over 36 months, the impact on your eventual pension is minimal (a few euros less per month). The immediate savings far outweigh this in most cases.

What does the company bike cost the employer?

With pure salary sacrifice (no employer subsidy), the company bike costs the employer nothing – they actually save money, as they don't pay social insurance contributions on the converted amount (about 20% of the conversion amount). The employer only has the administrative effort for the framework agreement with the leasing provider. A voluntary employer subsidy is an attractive benefit that is tax-deductible as a business expense.

Can I claim commute allowance despite having a company bike?

Yes! The commute allowance (€0.30 per km for the first 20 km, €0.38 from the 21st km) can be claimed regardless of whether you use a company bike. This applies to all means of transport. So in addition to savings from salary sacrifice, you can deduct the commuter allowance in your tax return.

How does insurance work with a company bike?

Most leasing providers (JobRad, BusinessBike, Lease-a-Bike, etc.) offer all-inclusive packages that include theft insurance, comprehensive coverage, pick-up service, and wear-and-tear repairs. Costs are typically €5-15 per month depending on the bike value and coverage scope. These costs are usually included in the monthly lease rate.

Company Bike 2026: How Much Do You Really Save Through Salary Sacrifice? | Company Bike Calculator

What Is a Company Bike and Why Is It Worth It?

A company bike (Dienstrad) is a bicycle or e-bike provided by the employer through a salary sacrifice leasing arrangement. The major advantage: instead of buying the bike from your taxed net income, you finance it from your gross salary. This saves you income tax and social insurance contributions. Since the legal equalization of company bikes with company cars in Germany in 2012, the model has grown rapidly. Over 1.5 million employees in Germany now use a company bike.

How Does Salary Sacrifice Work for Company Bikes?

The principle is straightforward: your employer signs a framework agreement with a leasing provider such as JobRad, BusinessBike, or Lease-a-Bike. You choose your preferred bike from a participating dealer. The monthly lease rate is deducted directly from your gross salary — before taxes and social insurance. This reduces your taxable income and therefore your deductions.

Calculation Example 2026

Let's take an e-bike with an RRP of EUR 3,000, tax class I, gross salary EUR 3,500, 36-month term. The monthly lease rate is approximately EUR 109 gross (including insurance). Through salary sacrifice, your gross drops from EUR 3,500 to EUR 3,391. The tax and social insurance savings amount to approximately EUR 40-50 per month. Your net loss is therefore only about EUR 60-65 — significantly less than the EUR 109 lease rate. Over 36 months, you effectively pay around EUR 2,200 for a EUR 3,000 bike (including buyout).

The Benefit-in-Kind: What Gets Taxed?

Since 2020, bicycles and e-bikes (pedelecs up to 25 km/h) leased through salary sacrifice have a reduced benefit-in-kind of only 0.25% of the RRP per month. For a EUR 3,000 bike, that is EUR 7.50 monthly that must be additionally taxed — a minimal amount compared to the savings.

Important: If the employer provides the bike on top of salary (no salary sacrifice), the benefit-in-kind for bicycles and e-bikes is even 0%. Only S-pedelecs (over 25 km/h) are treated like company cars — with 1% of the RRP as a monthly benefit-in-kind.

What Changes in 2026?

The good news: the tax treatment of company bikes remains favorably unchanged in 2026. However, social insurance contribution ceilings increase, which may slightly affect savings at higher salaries. The basic tax allowance rises to EUR 12,084 (2025: EUR 11,784). Nursing care insurance increases to 3.6%. All these changes are already reflected in our calculator.

Who Benefits Most from a Company Bike?

Maximum Savings at Medium to High Salaries

The higher your tax rate, the more you benefit from salary sacrifice. In tax class I with a gross salary between EUR 3,000 and EUR 6,000, typical savings are 25-35% compared to the retail price. Those in tax class III save even more through the splitting advantage.

E-Bikes as the Optimal Choice

E-bikes (pedelecs) benefit from the lowest benefit-in-kind rate (0.25%) while having the highest RRP — ideal for salary sacrifice. A EUR 4,000 e-bike often costs effectively less than the net expense for a EUR 2,000 privately purchased bike.

Commuters Benefit Twice

Those who use the company bike for commuting can additionally claim the commute allowance (EUR 0.30/km for the first 20 km, EUR 0.38/km from the 21st km). This applies regardless of the mode of transport and brings additional tax savings of EUR 200-1,000 per year depending on distance.

What Happens After the Lease?

After the typical 36-month term, you have three options: buy the bike at residual value (typically 18% of RRP), extend the lease at reduced terms, or return it. Most choose to buy — the residual value is well below the actual market value of the bike.

Risks and Disadvantages

Impact on Social Benefits

Salary sacrifice reduces your social-insurance-liable income. This has a minimal impact on pension entitlements, sick pay, and unemployment benefits. With a lease rate of EUR 100 over 36 months, the pension effect is marginal (a few euros less pension per month).

Job Change

What happens if you change jobs? Typically, the lease contract can be transferred to the new employer. Alternatively, some providers offer buyout options where you can continue the contract privately. Check your provider's terms in advance.

The Most Popular Leasing Providers Compared

The German company bike leasing market is dominated by several major providers. **JobRad** is the market leader with the largest dealer network and an established administration platform. **BusinessBike** scores with flexible insurance packages and a streamlined process. **Lease-a-Bike** offers attractive terms for smaller companies. **Eurorad** convinces with a broad service offering. Leasing factors (typically 3.0-3.5% of RRP for 36 months) are similar — the decisive differences lie in insurance coverage, buyout conditions, and the digital administration portal.

Step by Step: How to Get Started

1. Check whether your employer already offers a company bike program (ask HR). 2. Choose your desired bike at a participating dealer — take time for thorough consultation. 3. Have a quote prepared with the specific lease rate. 4. Use our calculator to determine your effective costs and savings. 5. Sign the supplementary agreement to your employment contract. 6. Receive your bike and enjoy the ride.

Conclusion: Company Bike as a Win-Win

The company bike through salary sacrifice is a genuine win for most employees. Tax and social insurance savings of 15-40% compared to the retail price, combined with the commute allowance and unrestricted private use, make it one of the most attractive employee benefits available. For employers, it is a virtually cost-neutral benefit that boosts employee satisfaction and contributes to sustainability goals. Use our calculator to determine your personal savings — the numbers speak for themselves.