In the first part of our mini blog series we discussed the training plan you are required to introduce for your employees in Belgium before 31 March. In this second blog, we will zoom in on the biking allowance which was introduced recently.
Although we are not quite at the level of the Dutch (the Dutch will cycle to their own wedding, so to speak), using the bike for the daily commute has become increasingly popular in Belgium in recent years, especially with the rise of e-bikes and speed pedelecs. Employers are already obliged to contribute to their employees’ public transport costs and a number of sectors had included travelling by bike in the list of means of transport qualifying for such support. On January 24 this year the social partners of the National Labour Council signed a collective agreement (CLA No. 164 or “the CLA”) to extend this provision across all sectors and so to provide a positive cash incentive to take to 2 wheels (and presumably also 1 or 3, depending on your skill level and just how foolish or weird you are prepared to look for the good of the environment).The bicycle allowance is EUR 0.27 per kilometer ridden and is exempt from taxes and social security contributions. This amount will change annually roughly in line with inflation. The compensated distance is limited to 20 kilometers each way. The allowance is paid every month in arrears together with the employees’ wages.