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 24%)
- Office and handling costs: 15 €/month (incl. VAT 24%)
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 13,50 €/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.
Finnish Centre for Pensions new application guideline
Finnish Centre for Pensions updated their application guideline (in Finnish) regarding the bicycle benefit and business trip tickets 8.4.2021. According to the new instructions, social security costs must also be paid for the portion of the tax-free bicycle benefit deducted from the salary, with the exception of the health insurance contribution.
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 1,5 %)||+1,50 €/month|
|GoByBike office and handling costs:||-15,00 €/month|
|COST TO EMPLOYER:||-13,50 €/month|
|Taking into account the corporate tax:||-10,80 €/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).