How much does your company bike save you compared to a car?

In the case of salary conversion, the employee receives a portion of the contractually agreed salary not in cash, but as a payment in kind for the period during which the company bike is made available. This means that a change is made by means of a supplementary agreement to the employment contract, in which the employee's future salary is reduced by a fixed amount (conversion rate) for the duration of the transfer of use. This then results in the tax and contribution benefit for the employee. In most cases, the imputed income is also subject to taxation. This is added to the monthly gross salary.

What does this mean exactly?

Gross monthly salary

+ taxation of imputed income

- Conversion rate

- All-round protection costs

= new gross monthly salary

- Taxes

- Taxation of imputed income

= net monthly salary

If you now compare the net monthly salary without the company bike with the net monthly salary with the company bike, you get the monthly costs for the company bike leasing.

Below are some explanations of terms.

Conversion Rate:

The conversion rate is the sum of the leasing rate and the cost of the selected all-round protection package, less any cost coverage by the employer The gross monthly salary is reduced by this conversion rate.

Taxation of the imputed income:

Depending on the form of the transfer by the employer, the use of the company bike is subject to taxation of the non-cash benefit. If a company bike is also provided for unrestricted private use as part of a salary conversion, the non-cash benefit must be taxed. The non-cash benefit from company bike leasing is calculated at a flat rate of 1% of a quarter of the gross list price (RRP) rounded down to a full €100, added to the taxable income and also taxed. This is also referred to colloquially as 0.25% taxation. The amount for the imputed income can be found in the calculation overview in the bike leasing calculator.

With salary conversion, you as an employee do not receive part of your contractually agreed salary in cash, but as a non-cash benefit for the period in which the company bike is provided.

This means that an amendment is made to the employment contract in which your future salary is reduced by a fixed amount (conversion rate) by mutual agreement for the duration of the transfer of use. This then results in a tax and contribution advantage for you as an employee. You can easily calculate your savings in our calculator.

You can also find out whether bike leasing is worthwhile in our article “Buying or leasing a bike: which is cheaper?”.

Company wheel leasing via salary conversion reduces your monthly gross income and therefore also the social security contributions for your pension. This is often seen as a disadvantage of employee leasing. However, the resulting losses are minimal. With a bike price of 3,000 euros, for example, the future pension entitlement is reduced by around 2 euros per month if the bike is leased with salary conversion over 36 months. Extrapolated, this would be a total of 468 euros less pension for the entire pension entitlement period. This amount is less than the average savings from a company bike. There is also the positive health aspect: according to current studies, regular cyclists are not only fitter and healthier, they also live longer.

If you receive your company bike as a salary supplement, the employer bears the entire cost on top of your salary. As there is no salary conversion in this case, social security contributions are not reduced. The pension is therefore also not affected.

If your continued salary payments are discontinued, our payment default protection comes into effect. This happens, for example, if you are ill for longer than 42 days and receive sick pay or go on parental leave. Lease a Bike will cover the leasing installments for a maximum period of 12 months if the leasing contract has already been running for 6 months. In any case, we will always work together to find the best solution for all parties, unless one of the following options is possible or applies.

These can be:

• Change of user. Your employer offers the company bicycle to another employee for the remaining term of the contract. The company takes all necessary internal measures for this (e.g. supplementary agreements to the employment contract, handover of the company bike).
• Premature termination of the existing leasing contract by mutual agreement for important economic reasons with possible takeover of the used company bike by you as an employee. You also have the option of financing the purchase price via our FINANCE A BIKE product.
• If you change companies, it is possible to transfer the existing leasing contract to a new company. After a credit check, the contract will be continued by the new company with all rights and obligations and the company bike will continue to be provided to you for the remaining term.
• Return. If all of the above points do not apply in your case, the bike must be returned to your employer. We will then discuss the details of the individual process with your employer.

If your continued salary payments are discontinued, our payment default protection comes into effect. This happens, for example, if you are ill for longer than 42 days and receive sick pay or go on parental leave. Lease a Bike will cover the leasing installments for a maximum period of 12 months if the leasing contract has already been running for 6 months. In any case, we will always work together to find the best solution for all parties, unless one of the following options is possible or applies.

These can be:

• Change of user. Your employer offers the company bicycle to another employee for the remaining term of the contract. The company takes all necessary internal measures for this (e.g. supplementary agreements to the employment contract, handover of the company bike).

• Premature termination of the existing leasing contract by mutual agreement for important economic reasons with possible takeover of the used company bike by you as an employee. You also have the option of financing the purchase price via our FINANCE A BIKE product.

• If you change companies, it is possible to transfer the existing leasing contract to a new company. After a credit check, the contract will be continued by the new company with all rights and obligations and the company bike will continue to be provided to you for the remaining term.

• Return. If all of the above points do not apply in your case, the bike must be returned to your employer. We will then discuss the details of the individual process with your employer.

The user selects one option each for theft & damage protection (incl. free Europe-wide mobility guarantee), inspection and wear and tear and thus configures the all-round protection package according to their individual requirements. Accordingly, each all-round protection package includes theft and damage protection as well as a budget for inspection and wear and tear.

Read the article “Bike leasing and repairs” to find out who pays for repairs, what services are covered, and how to respond correctly.

Please report the theft to the police immediately. The file number is required for the report. Have both original keys ready and provide the frame number when reporting the theft (you can find this in the Lease a Bike portal). After you have reported the theft to the police, you can report it quickly and easily directly in the Lease a Bike portal.

1. To do this, please log in to the portal as usual.
2. Under “Contracts,” select the relevant contract and click on “Report damage/theft.”
3. You will be redirected to the secure Allianz partner portal to upload all the details of the incident and the police report.
4. You did not lease a lock? Then we need proof of how the company bike was secured (e.g., receipt for the lock).

Important: Please wait for the final approval by email from Lease a Bike. Only then can you go to your specialist dealer (as part of the all-inclusive protection) to choose a new bike of the same type and quality. We will take care of invoicing and payment for the new bike.

Note on replacement of the item in the event of theft within the existing contract with a bicycle of the same type and quality. The new bicycle must only correspond to the purchase value of the stolen bicycle, including accessories.

However, the company bike will only be replaced if the all-inclusive option for theft and damage protection has been selected. If the user only has the premium version, the current value insurance applies and the leasing contract is terminated in the event of theft and the bike is not replaced.