Bicycle Allowances Are Gaining Ground: A Smart Addition to Your Compensation Package
August 2026 - More and more employees are choosing to bike to work. In 2025, nearly 8% of employees with permanent contracts received a bicycle allowance. In Flanders, that share rose to over 15%—or more than one in seven employees. The bicycle allowance has become an attractive fringe benefit. So why should—or shouldn’t—your company offer a bicycle allowance?
The labor market remains tight, and employers are constantly looking for ways to attract and retain talent. A competitive salary remains important, but employees are placing increasing value on fringe benefits. A bicycle allowance fits perfectly into this trend. Employees who bike to work receive an allowance per kilometer traveled. Under certain conditions, this allowance is exempt from taxes and social security contributions, making it particularly advantageous for both the employer and the employee.
When are you required to pay a bicycle allowance?
Whether you, as an employer, are required to pay a bicycle allowance depends on the sector in which you operate. In many joint committees, the bicycle allowance is included in the sectoral collective bargaining agreement. Employers in those sectors are therefore required to grant the agreed-upon allowance to employees who bike to work.
If there is no sector-specific requirement, you can still voluntarily introduce a bicycle allowance through a company collective bargaining agreement, the employment regulations, or individual agreements with your employees.
How much is the bicycle allowance?
The bicycle allowance is calculated based on the actual distance traveled in kilometers between the employee’s home and the workplace. Employers may grant an amount higher than the sectoral minimum, as long as they comply with the tax and social security limits in effect at that time. Within those limits, the allowance remains exempt from taxes and social security contributions.
Be sure to always check which rules apply in your sector, as some collective bargaining agreements specify a particular amount or minimum allowance.
Significant Differences Across Sectors
In Flanders, more than 15% of employees receive a bicycle allowance. In Brussels and Wallonia, that percentage is considerably lower. There are also significant differences between sectors. Hospitals, the healthcare sector, pharmacies, and the chemical industry are particularly leading the way. In addition, it appears that large companies offer a bicycle allowance more often than smaller businesses. Yet, especially among SMEs, there is still a great deal of potential to distinguish themselves as attractive employers.
Beneficial for Both Employees and Employers
A bicycle allowance naturally costs money, but it also yields significant benefits. It increases employees’ purchasing power in a tax-efficient way, supports a sustainable mobility policy, and contributes to an attractive employer image. For many companies, the bicycle allowance has therefore evolved from a nice perk to a core component of their compensation policy.
What about you?
Check whether your industry requires a mandatory bicycle allowance. If not, a voluntary bicycle allowance can be a relatively inexpensive way to make your compensation package more attractive and encourage employees to bike more often.
