How much does offering the bike benefit cost to the employer?
GoByBike bike benefit monthly leasing payments are made of two parts:
- The rent of the bike: 100 €/month (taxable amount, incl. VAT 25,5 %)
- Office and handling costs: 15 €/month (incl. VAT 25,5 %)
The most common way is to deduct the taxable amount from employees monthly salary while the employer pays the monthly office and handling costs. This way, the cost of offering the benefit is 13,84 €/month per employee utilising the bike benefit.
The employer can also offer the benefit partially or fully on top of the monthly salary, in which case the costs of offering the benefit increase approximately by the amount offered on top of the monthly salary.
VAT increase September 1, 2024 onwards
Finnish Parliament decided to increase the VAT from 24 percent to 25,5 percent starting September 1, 2024. Due to this, the monthly rent for bicycles that were delivered prior to September 1, 2024 increases to 101,21 € per month starting September 1, 2024.
Example calculation for one employee, when the taxable amount is wholly deducted from their monthly salary.
| Taxable amount of bicycle benefit:(deducted from employees salary) | 100,00 €/month |
| The amount employer saves in social security costs:(health insurance premium 1,16 %) | +1,16 €/month |
| GoByBike office and handling costs: | -15,00 €/month |
| COST TO EMPLOYER: | -13,84 €/month |
| Taking into account the corporate tax: | -11,14 €/month |
See how much an employee saves utilising the bicycle benefit
You can examine the amount an employee saves using the employee calculator (in Finnish).