This article provides a general overview of the employee contribution in bike leasing. The employee contribution is generally possible – regardless of whether your company also offers an employer subsidy or not.
The article is intended as information for HR/Admin and describes the framework conditions as well as the typical process.
Basic Principle: Gross Salary Conversion vs. Employee Contribution
Gross Salary Conversion
With gross salary conversion, the leasing rate is deducted from the gross salary/wage. This reduces the basis for calculating income tax and social security contributions. This can result in a price advantage for employees.
Employee Contribution
With the employee contribution, the leasing rate is deducted from the net salary/wage. This option can be particularly relevant if gross salary conversion (e.g., due to compensation close to the collective agreement) is not practical or not possible.
Optional: Employer Subsidy
Your company can optionally support the employee contribution through an employer subsidy. Whether and to what extent a subsidy is provided is determined by you as the employer.
Requirements (Overview)
The use is generally intended for employees who:
- are permanently employed
- have a permanent employment contract
For gross salary conversion, the following additionally applies:
- Employees must be paid above the collective agreement so that the salary/wage remains above the minimum collective agreement even after deducting the leasing rate.
Process (Typical Procedure)
Gather Information
Use the calculator on the website to get an estimate of the leasing rate and possible savings compared to a cash purchase. Note: The tax advantage may be lower if other tax benefits are already being used.
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Consult with HR/Payroll
Check internally whether gross salary conversion or the employee contribution is suitable for the person and which company code should be used. If an employer subsidy is planned, also clarify the internal processing. -
Registration in the Portal
Employees register with the company code in the portal and receive their personal bike leasing user ID (eight-digit code) via email.
This user ID is required for the leasing request at the partner dealer (one per person, regardless of the number of leased bikes). -
Leasing Request via Partner Dealer
Employees select the desired bike at the specialist dealer. The dealer submits the leasing request (including the employee’s signature). -
Approval & Pickup
After approval, employees pick up the bike at the dealer (bring ID).
Important Notes
- A reduction of the gross salary/wage can have effects, for example on:
- Social security cash benefits (e.g., maternity pay, sickness benefit)
- Pension
- Employee provident fund contribution
- Unemployment benefits
- If the bike is purchased at the end of the term, the monetary benefit may be taxable (difference between residual book value and residual value).
- Upon termination, the bike can – depending on the agreement – be returned or bought out; otherwise, claims may arise.
Further Information and Links
The Path to Your Desired Bike – How Bike Leasing Works
Insurance and Service Manual
Translation Note: This article has been translated using automatic translation software to provide the reader with a basic understanding of the content. Despite reasonable efforts to provide an accurate translation, we cannot guarantee its accuracy.
If there are any questions regarding the accuracy of the information in the translated article, please refer to the German version of the article, which is the official version.