Cycling is hotter than hell. We’re jumping on our bikes en masse to avoid endless traffic jams to work. Already many employees in the private sector today enjoy a bicycle allowance and that number will soon increase. Because since 1 May 2023, there is a mandatory bicycle allowance for all private sector employees. But, what exactly does this mean for the employer?
Is your employee entitled to the mandatory bicycle allowance?
The brand new collective labour agreement (CLA) is a supplementary one. This means that things will not change for everyone.
The new collective agreement does not apply if a collective agreement has been concluded at sector or company level containing specific agreements on bicycle allowance. In that case, the award conditions and the amount from the old collective agreement will determine your allowance, even if the amount is lower.
Is the bicycle allowance granted on the basis of a section in the labour regulations or individual employment contract? Then, as an employer or HR-manager, you must apply the new rules. Because that employee will fall under the new collective agreement for commuting by bicycle from 1 May 2023.
For those who do not yet receive a bicycle allowance, it is simple. From 1 May 2023, regardless of the sector or company in which they work, employees will receive an allowance for cycling (on a regular basis) to work.
For which trips will the employee be reimbursed?
The employee will receive a bicycle allowance if the distance between home and work is regularly covered by bicycle. In other words, the employee must come by bike once a week, for example, or leave the car at home during summer.
If the employee uses the bicycle and other means of transport to come to work, you can get compensation for both. However, this must involve a different part of the commuting route (e.g.: part by bike and part by train) or the same route taken at different times of the year (e.g.: in summer by bike, the other seasons by car).
But, what does the collective agreement actually mean by a bicycle? The definition of a bicycle is taken from the police general regulations. It is a bicycle, motorised bicycle or speed pedelec.
How much is the bicycle allowance?
Per kilometre travelled, employees will receive 0.27 euros. This amount is indexed annually and applies to a maximum distance of 20 kilometres per single journey.
To receive your reimbursement, your employees can use our commute planner. A tool in which they easily register their commute.
Do you want to know more about bicycle compensation, then watch our webinar or schedule a call with our team.