The number of people being paid to bicycle to work has risen significantly in recent years and is expected to rise even further as the bicycle allowance becomes mandatory in Belgium.
Last year, almost one in three employers in Belgium (29%) were already giving their employees a bicycle allowance – an addition to their salary calculated by the distance commuted by bicycle – up from just 16% in 2017.
The share of Belgians with a bicycle allowance also doubled in five years: from 7% in 2017 to 14% in 2022, according to HR service provider SD Worx.
"In Flanders, almost one in five private employees (18%) provide an allowance; in Brussels, it is just 6%," said Veerle Michiels, SD Worx mobility expert.
After the decline in 2020 and 2021, the median bicycle allowance also increased slightly by 5% in 2022, meaning overall, people covered slightly more kilometres by bicycle.
No longer optional
The bicycle allowance is currently only voluntary and down to the discretion of the employer as to whether to grant it and how much. But from 1 May, the number of people cycling to work will most certainly increase, as a mandatory bicycle allowance is introduced.
"Those who cycle to work and are not yet entitled to a specific bicycle allowance based on a collective bargaining agreement (CBA) will receive a tax-free allowance of €0.27 per kilometre from 1 May," Michiels explained. In 2022, the maximum allowance was still €0.25 per kilometre.
The change is the result of an agreement between employer and employee representatives within the National Labour Council. The allowance will cover a maximum of 40 kilometres per day, amounting to a maximum of €10.80 per day.
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"This is certainly a nice incentive for employees to make (part of) their commute by bike more regularly. These new agreements will make 2023 the year of the bicycle (allowance)," Michiels concluded.
SD Worx did note that existing agreements may remain unchanged but stressed that employers who do not yet grant a bicycle allowance will have to comply with the new agreement.
