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.

Employers: What Does a Company Bike Program Really Cost — and What Are the Benefits? | Company Bike Calculator

The Company Bike as an Employer Benefit

More and more companies are offering their employees a company bike program — from startups to DAX corporations. The reason: it is one of the few benefits that costs the employer nothing (or almost nothing) while being extremely popular with employees. But what exactly is behind it?

What Does the Company Bike Program Cost the Employer?

Model 1: Pure Salary Sacrifice

With pure salary sacrifice, there are no direct costs for the employer. On the contrary: since the employee forgoes part of their gross salary, the employer saves the social insurance contributions on the converted amount — approximately 20% (health, pension, unemployment, nursing care employer share + levies). With a lease rate of EUR 100, the employer saves about EUR 20 per month per bike.

Model 2: With Employer Subsidy

Many employers voluntarily provide a subsidy of 10-50% of the lease rate. This is an attractive signal and significantly increases the utilization rate. The subsidy is deductible as a business expense. With a 25% subsidy and a rate of EUR 100, the employer pays EUR 25 — but simultaneously saves about EUR 15 in social insurance (on the remaining EUR 75 of salary sacrifice). Net cost: approximately EUR 10/month/bike.

Model 3: Fully Employer-funded

In this model, the employer provides the bike on top of salary. For bicycles and e-bikes, the benefit-in-kind for the employee is completely eliminated (0% since 2019). The employer pays the full lease rate but can deduct it as a business expense. This is the most generous model and a powerful tool for employee retention.

The ROI of a Company Bike Program

Employee Retention

In times of skills shortages, benefits are decisive. Studies show that a company bike program significantly increases employee satisfaction. 67% of company bike users say the benefit has increased their loyalty to the employer. The cost of a new hire (averaging EUR 15,000-25,000) is out of proportion to the cost of a company bike subsidy.

Health Promotion

Cycling employees are on average 2-3 fewer days sick per year. At average absence costs of EUR 300-400 per day per employee, the ROI quickly exceeds the cost of a company bike subsidy.

Sustainability Goals (ESG)

For listed companies and those with ESG reporting obligations, the company bike program is a measurable contribution to CO2 reduction. An employee who shifts a 10 km commute from car to bike saves approximately 650 kg CO2 per year. With 50 company bike riders, that is over 30 tonnes of CO2 annually.

Implementation: How to Get Started

1. Choose a Leasing Provider

Compare JobRad, BusinessBike, Lease-a-Bike, and Eurorad. Terms are similar; differences exist in insurance coverage, dealer networks, and administration platforms.

2. Sign a Framework Agreement

The framework agreement regulates the conditions for all lease contracts. The effort is minimal and one-time.

3. Inform Employees

Actively communicate the program — via email, intranet, team meetings. Highlight specific savings (e.g., 'Save up to 40% on your dream bike'). Use our calculator as a tool for interested employees.

4. Administration

Ongoing administration is minimal. Leasing providers offer portals for order management, contract overviews, and automated payroll integration.

Common Employer Concerns

**'What about terminations?'** — The lease contract can be privately taken over by the employee or transferred to the new employer. The risk for the employer is minimal. Most leasing providers have established processes for this case.

**'Too much administration?'** — The providers handle most of it. The employer's effort is limited to monthly payroll processing (automated). Most HR teams report less than 30 minutes per month for the entire fleet.

**'Only worthwhile above a certain size?'** — No. Even companies with just 1 employee can offer a company bike program. There is no minimum size. Especially for small companies, it is a simple benefit with great impact.

Practical Example: Mid-Sized Company with 50 Employees

A mid-sized company offers its 50 employees a company bike program with 25% employer subsidy. 20 employees (40%) take up the offer, with an average lease rate of EUR 100 per month. The cost: 20 bikes x EUR 25 subsidy = EUR 500 per month gross. The SI savings: 20 x EUR 15 = EUR 300 per month. Effective net cost: approximately EUR 200 per month for 20 satisfied employees with an attractive benefit. For comparison: a single job posting on Indeed or StepStone costs EUR 500-1,500.

Combining Company Bike with Mobility Budget

Progressive employers offer the company bike as part of a mobility budget. Employees can choose: job ticket, company bike, subsidy for the Deutschlandticket, or a combination. The company bike fits seamlessly into modern mobility concepts and supports the transport transition at the corporate level.

Tax Deductibility for the Employer

All expenditures related to the company bike program are deductible as business expenses: lease rates (models 2 and 3), employer subsidies, administrative costs, and any additional insurance. The lease rates are also subject to input tax deduction (VAT). This means the actual net expenditure for the employer is even lower than the gross amounts suggest.

Conclusion

A company bike program is a no-brainer for employers: no or minimal costs with pure salary sacrifice, social insurance savings, tax-deductible business expenses for subsidies, and measurable benefits for employee retention, health, and sustainability. Implementation is straightforward, administration is minimal, and employee satisfaction is high. Our company bike calculator helps you and your employees transparently present the specific numbers.