That’s why company bike leasing is cost-neutral for employers

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Savings of up to 40 percent on the acquisition of a new bicycle – that’s what makes company bike leasing an attractive benefit for employees. But what about companies? They also benefit when they rely on company bike leasing for positive employer branding – without any major investment, because service bike leasing is cost-neutral for employers. Read on to find out how it works.

Company bike leasing: who pays for the lease?

With company bike leasing, a bicycle or e-bike is financed through monthly payments (similar to installments). The employer is the lessee. However, this does not imply that the employer bears the costs of the bike lease. The monthly lease payments are taken out of the gross salary of the employee to whom the employer provides the company bike.

Cost-neutral benefit thanks to salary conversion

Within the framework of salary conversion, the employee receives a portion of their salary not as direct remuneration but as a benefit in kind. In the context of company bike leasing, this benefit in kind comes in the form of the company bike provisioned to the employee. The employer retains part of the employee’s contractual salary, provisioning the employee with a company bike in lieu of the salary portion retained. In this way, the employee finances the company bike themselves, implying that the employer does not incur any costs.

Digital process minimizes administrative effort

Salary conversion reduces the taxable gross salary of the bike user for the term of the lease, reducing the employee’s taxes and social security contributions as well as the employer’s incidental wage costs. Thanks to the digital process handled via the Bikeleasing portal plus our comprehensive services, the administrative effort for the employer’s company is minimal.

Even more Bikeleasing benefits for employers

Cost neutrality is only one factor in the business case for employers to offer company bike leasing in their organization. We have summarized the other advantages for companies in our blog post entitled 5 reasons for bike leasing. For detailed information and to register as an employer, visit Bike leasing for employers on our website.

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