Source: Nieuwsfiets

Three years after the introduction of a mandatory bicycle-commuting allowance for private company employees in Belgium, record numbers of individuals are in receipt of the tax break, with e-bikes indicated as a significant factor.

In May 2023, a scheme introduced in Belgium entitled employees who regularly cycle to and from work to a reimbursement. Analysis of data by HR specialists Acerta shows that more than 1 in 6 employees now receive a cycle commuting allowance, an increase of 15% in two years. The findings are based on data from 360,000 employees at 37,500 private-sector employers.

Those claiming the commuting allowance are entitled to up to €0.37 per km travelled, with an annual limit of €3,690, and a travel limit of 40 km per working day. Legally, the cycle commuting allowance includes any kind of bicycle including e-bikes, cargo bikes and speed pedelecs.

The Acerta analysis finds that the average share of employees of all ages cycling to work is 17.8%. When different age groups are examined however, the higher uptake of the cycling allowance is among the youngest and oldest employee age brackets. Employees under the age of 25 is almost 1 in 5, at 18.6%, while those over 55 are at 19.2%. Nieuwsfiets suggests that increasing popularity of e-bikes among young people generally could be a factor, noting that they enable the easier travelling of longer distances. Regarding the 55-plus age group of employees, the benefits of e-bikes in general for older adults have been the subject of various studies over the last several years.

Positive results

Since the introduction of the cycle-commuting allowance, the average amount paid by employers – who can set the payable amount within set parameters – has increased. In 2023, the payout was an average of €0.25 per km travelled; now the average is €0.32, meaning that a cycling employee now receives an average of €58.55 per month, compared to €46.40 in 2023.

Charlotte Thijs, mobility expert at Acerta, commented on the findings. “Not only did employers increase the amount they grant per kilometer traveled. At the same time, more employees have started using bicycles for their commute, as shown by the percentage of employees receiving a bicycle allowance. The fact that the employees concerned receive a higher allowance on balance may indicate that not only are more people cycling, but also that those who cycle cover more commuting kilometers by bike. We are therefore seeing that Belgium is increasingly becoming a cycling country when it comes to commuting.”