Welcome to the third issue of Urbanism Now, our weekly newsletter curated with brief and insightful urban ideas from around the world to inspire action where you (c)are.
In Belgium, there is not always a fixed limit on the cycling allowance. It depends on the collective labor agreements (CLAs) negotiated at the company or sector level.
In the company where I am a union representative, we have a bicycle allowance of €0.27 per kilometer for commuting by bike (each way) between home and the workplace, based on the shortest reasonable route. However, contrary to some misconceptions, this amount is not capped at €810.
Since 2023, there has been a fiscal limit on tax-free bicycle allowances, initially set at €3,500 per year and now increased to €3,610. This means that only the portion exceeding this threshold is subject to taxation.
Through effective CLA negotiations, we have successfully promoted cycling by introducing a bicycle allowance and an advantageous bicycle lease program for our employees. As a result, the percentage of employees commuting by bike has grown from less than 3% in 2014 to an impressive 34% in 2024. And yes, we do have a few colleagues who cycle close to the fiscal limit!
We love some union power! Thanks for sharing and explaining further.
When they say the shortest reasonable route, do they bump into edge cases for this? For example, if there's no cycle path or one path is going over a but much shorter who has the final call on this?
The calculation of the bicycle commuting allowance is a bit more complex. It is based on the shortest route for cars as indicated by Google Maps. However, for insurance purposes, it is acceptable to take a reasonable detour for a safer cycling route—though these extra kilometers are not reimbursed. On the other hand, if the bicycle route is shorter than the car route, the allowance is still calculated based on the longer car route.
At the end of this year, new CLA negotiations will take place. Our goal is to increase the bicycle allowance to the newly permitted untaxed maximum of €0.36 per kilometer. Ideally, we want this amount to be automatically adjusted to the maximum untaxed limit in the future.
In Belgium, there is not always a fixed limit on the cycling allowance. It depends on the collective labor agreements (CLAs) negotiated at the company or sector level.
In the company where I am a union representative, we have a bicycle allowance of €0.27 per kilometer for commuting by bike (each way) between home and the workplace, based on the shortest reasonable route. However, contrary to some misconceptions, this amount is not capped at €810.
Since 2023, there has been a fiscal limit on tax-free bicycle allowances, initially set at €3,500 per year and now increased to €3,610. This means that only the portion exceeding this threshold is subject to taxation.
Through effective CLA negotiations, we have successfully promoted cycling by introducing a bicycle allowance and an advantageous bicycle lease program for our employees. As a result, the percentage of employees commuting by bike has grown from less than 3% in 2014 to an impressive 34% in 2024. And yes, we do have a few colleagues who cycle close to the fiscal limit!
We love some union power! Thanks for sharing and explaining further.
When they say the shortest reasonable route, do they bump into edge cases for this? For example, if there's no cycle path or one path is going over a but much shorter who has the final call on this?
The calculation of the bicycle commuting allowance is a bit more complex. It is based on the shortest route for cars as indicated by Google Maps. However, for insurance purposes, it is acceptable to take a reasonable detour for a safer cycling route—though these extra kilometers are not reimbursed. On the other hand, if the bicycle route is shorter than the car route, the allowance is still calculated based on the longer car route.
At the end of this year, new CLA negotiations will take place. Our goal is to increase the bicycle allowance to the newly permitted untaxed maximum of €0.36 per kilometer. Ideally, we want this amount to be automatically adjusted to the maximum untaxed limit in the future.
I have to correct some numbers in the one but last sentence above. It should be "has grown from 3.7% in 2017 to an impressive 34% in 2024"