Mandatory bicycle allowance according to CBA 164

A new Collective Bargaining Agreement (CBA 164) has been concluded and entered into force as of May 1st 2023 with respect to the mandatory provision of a specific allowance for employees who commute on a regular basis to work by bicycle (a bicycle, a motorized bicycle or a speed pedelec, as defined in the General Road Traffic Police Regulations, except that motorized bicycles and speed pedelecs only qualify if they are electrically powered).
 

Scope, terms and conditions

The CBA164 regulates the granting of a bicycle allowance under the following conditions:

• The CBA is applicable in case of regular travel by bicycle between the place of residence of the employee and the place of employment. Occasional trips do not qualify. The CBA does not provide a definition of what is meant with “regular” but provides some examples (e.g. 1 day a week, full summer,…);
• For the same travel distance, no more than one allowance may be granted by the employer at the same time (e.g. if you have a year subscription for the train, no additional bike allowance can be granted if you come occasionally by train for that route. The route towards the train station can be taken into account for the bike allowance);
• The allowance is capped at a maximum distance of 20 kilometers per single trip (i.e. 40 km a day);
• The employee needs to sign a declaration of honor mentioning the number of commuting kilometers by bicycle and the number of days.
   

Amount

The bicycle allowance amounts to 0,145 euro per kilometer and is indexed on a yearly basis. For income year 2023 the allowance is 0,27 euro per kilometer (which is fully exempted from social security contributions and income taxes) if the abovementioned conditions are fulfilled.
 

What does it mean for you?

• You already have a CBA in the sector or company regarding the bicycle allowance? In this case you can still apply the rules of that CBA and the sector or company CBA modalities and amounts are applicable. The CBA164 doesn’t replace the existing CBA.
• You have no system regarding bicycle allowance in place in the company? The CBA164 will be applicable for you with the conditions descripted above.
• You pay bicycle allowances based on a policy or agreement (no CBA)? The CBA164 will be applicable for you with the conditions descripted above as of May 1, 2023.