Bicycle allowance soon to be generalised?

Due to the corona crisis, the sales of bicycles, both classic and electric, have increased significantly. The use of shared bikes has also increased.

At the same time, many sectors have recently started to allocate a bicycle allowance or have increased the amount to be paid to cyclists who commute by bicycle.

Social security and tax treatment 

Allocating an allowance to workers who commute by bicycle is very interesting. The allowance is exempt from both social security contributions and payroll taxes. In other words, the bicycle allowance is a net amount.

However, two conditions must be met: on the one hand, the amount of the bicycle allowance may not exceed 0.25 € per kilometre (amount 2022) and, on the other hand, the worker can only receive this allowance for the kilometres actually travelled by bicycle. If he travels part of the journey by bicycle and part by train, he will receive this allowance for the kilometres travelled by bicycle. For the days he works from home, he will not get a bicycle allowance.

Do you have to allocate a bicycle allowance?

Currently, there is no general obligation to allocate a bicycle allowance to all workers who commute to work by bicycle. However, many sectors have concluded collective bargaining agreements that provide for the allocation of a bicycle allowance.

Some sectors allocate the maximum bicycle allowance (0.25 €/kilometre), others settle for a lower amount. So, to know what allowance to allocate, consult the sector information for your sector.

This matter is highly subject to change: in many sectors, compulsory intervention is being introduced or increased.

For example, since 1 July 2020, the auxiliary joint committee for non-manual workers (JC 200) allocates a bicycle allowance of 10 cents per kilometre. As of 1 July 2022, the amount of this allowance will be doubled to 20 cents per kilometre travelled. However, this joint committee, the largest in Belgium, limits the contribution to 4 € per working day (8 € as of 1 July 2022).

Several other sectors also increase the bicycle allowance to be paid on 1 July 2022. This is the case in the auxiliary joint committee for manual workers (JC 100), in the garage sector (JC 112), in the furniture and woodworking sector (JC 126), in the metal trade (JC 149.04), and for the liberal professions (JC 336).

If you are part of one of the 26 sectors that does not currently impose a bicycle allowance, you are not obliged to allocate the allowance.

Are you implementing a mobility-oriented bonus plan? 

If your company wants to put in place a bonus plan (CBA 90 – non-recurring performance-related benefits) with mobility-oriented objectives, you must allocate a bicycle allowance to your workers. However, you do not have to allocate the maximum allowance. You may allocate a lower amount if your sector allows for this.

And in the future?

In addition to the many sectors that are imposing more and more obligations in this regard, the federal government has decided to allocate a budget of 80 million (initially earmarked for a VAT reduction to 6% on bicycle sales) for the general introduction of the bicycle allowance.

This discussion is currently being conducted by the social partners. The National Labour Council and the “Conseil Central de l’Economie” have recently drawn up an interim report on the promotion of the bicycle for commuting, which mainly assesses the current situation. To be continued...

Sources:

CBA no. 90/4 of 22/02/2022;

Interim report no. 126 of the National Labour Council and the “Conseil Central de l’Economie”, 17 May 2022.