Bike Leasing for SMEs: Six steps to setting up a company bike program
How do small and medium-sized businesses implement bike leasing? This guide outlines the process, costs, and tax considerations for offering employee bike leasing within your own company in six steps—including additional benefit ideas.
The most important points at a glance.
Bike leasing in small and medium-sized enterprises (SMEs) is set up through deferred compensation and is, in many cases, cost-neutral for the company.
There is no minimum number of bikes required: You can get started with as few as one company bike.
To implement the program, all that’s usually needed is a framework agreement, a bike-use agreement, and integration with payroll accounting.
Since 2020, the monetary benefit has been taxed according to the 0.25 percent rule.
A voluntary employer contribution is considered a business expense and significantly strengthens employee retention.
Internal communication is key: A benefit that no one knows about has no effect.
A small business with 28 employees has been looking for a service technician for seven months. The job posting is still up, the salary is competitive, yet applications are still few and far between. During an interview with a candidate, the decisive question comes up: “And what else do you offer?” This is exactly where many small and medium-sized businesses begin to consider benefits—because these play an enormous role today in both recruitment and employee satisfaction.
Bike leasing is almost always on the list. The good news: Getting started with employee bike leasing is easier and more affordable than most companies expect. In this guide, we’ll show you why bike leasing is a good investment for small and medium-sized businesses, how to implement the program in six steps, and what potential pitfalls you should be aware of beforehand.
Why bike leasing is becoming a competitive advantage for SMEs.
The shortage of skilled workers hits smaller businesses particularly hard because they rarely can compete with large corporations when it comes to salaries. Additional benefits shift this competition to an area where SMEs can definitely hold their own. According to a 2025 Roland Berger study, companies that offer targeted benefits reduce their employee turnover by up to 40 percent. In addition, 21 percent of the HR managers surveyed planned to introduce bicycle leasing for the first time—making it one of the most commonly planned new offerings.
A look at the market shows just how widespread this model has become: According to the annual survey by Deloitte and Zukunft Fahrrad, there were approximately 2.2 million company bicycles on the road in Germany in 2025. Of these, 0.72 million were newly leased that same year. The usage rate is particularly noteworthy: it rose from about 8 percent of potential users in 2021 to 11 percent in 2025. The company’s bicycle leasing service is therefore in line with current trends—and is thus a clear competitive advantage.
Where bike leasing fits into the benefits package.
First things first: A single benefit doesn’t make an employer brand. Bike leasing is most effective when combined with one or two other benefits that address different needs. Offers that are tax-advantaged, require little administration, and make a tangible difference in everyday life work particularly well. You can find a detailed overview in our article on cost-effective employee benefits.
Benefit | Tax Classification | Operating Costs |
Bike leasing | Deferred Compensation, Non-Cash Benefit Under the 0.25 Percent Rule | minimal, the provider's digital portal |
Non-cash compensation (gift certificates) | Up to 50 euros per month, tax- and social security-free | low; provider platform is a good idea |
Subsidy for the Deutschlandticket | tax-free if granted in addition to wages | low, monthly billing |
Workplace Health Promotion | up to 600 euros per employee per year, tax-free | Note: Be sure to check the certification status of the offers |
Continuing Education | Work-related, generally tax-exempt | resources, plan your time budget |
Flexible Work Hours and Working from Home | No tax implications | Low; clear rules are needed |
The 50-euro in-kind benefit is the quickest way to get started, because it can be adjusted monthly and doesn’t create a long-term commitment. Bike leasing, on the other hand, fosters a stronger sense of loyalty, because the contract typically runs for 36 months and employees are allowed to use their bikes for personal use as well. Combining the two addresses two different needs: the small monthly bonus and the larger purchase that hardly anyone else could afford. Our overview of employee retention strategies offers additional ideas.
Introducing a company bike leasing program: An overview of the six steps.
Many companies are put off by the perceived administrative burden. In practice, however, bike leasing can be implemented in just a few weeks—provided the steps are taken in the right order.
Clarify the team's needs
Before selecting a provider, take a moment to check in with your staff—ideally by asking three or four questions in an anonymous survey. This will help you determine whether there is any interest at all, how many people would participate, and what types of bikes are in demand—from city bikes for short commutes to cargo bikes for families. This helps prevent misjudgments and provides strong arguments for internal communication later on.
Select a provider and enter into a framework agreement
Look for a digital portal, a large network of specialty retailers, transparent protection packages, and accessible support. For small businesses, it’s also important that there is no minimum number of bikes required. The framework agreement itself is usually signed quickly, and setting up an account on the portal is free of charge.
Define the framework
Here, you decide on the questions that will be asked most frequently later on: Who is eligible to participate? How many bikes per person are allowed? Is there a price cap? And do you provide an employer subsidy? A subsidy isn’t mandatory, but it significantly strengthens employee retention and makes the offer attractive even to low-income employees.
Prepare contract documents and payroll records
For each participating employee, a loan agreement is entered into as an addendum to the employment contract. At the same time, the payroll department incorporates the deferred compensation and the non-cash benefit: Since the Federal Ministry of Finance (BMF) letter dated January 9, 2020, the 0.25 percent rule has applied to company bicycles. Reputable providers supply templates and payroll data for this purpose, so that your tax advisor simply needs to enter the figures.
Communicate Internally
A benefit that nobody knows about is ineffective. Therefore, plan to hold a brief informational session, send an email with a sample calculation, and post a notice or write an intranet article. It’s especially helpful to provide a concrete example with a realistic gross salary that shows exactly how much is actually deducted from the net pay. Abstract percentages are less convincing than a tangible number.
Monitor usage and make adjustments
After six to twelve months, it’s worth taking a look at the participation rate. If it’s significantly lower than the level of interest indicated in the survey, the problem is usually a lack of information, not a lack of demand. In that case, a second round of communication, a consultation with the provider, or a subsidy as an additional incentive can help.
How much does bike leasing cost the company?
Good to know: In most cases, company bike leasing is cost-neutral for employers because the lease payment is financed through payroll deduction from employees’ gross salaries. Registration and setup on the Lease a Bike portal are free of charge. Since the gross salary subject to social security contributions decreases, non-wage labor costs are also reduced. Costs are incurred only if you voluntarily provide an employer contribution—this is considered a business expense and is tax-deductible.
Especially in small businesses without their own HR department, the administrative burden is a key factor in deciding whether to introduce a benefit. Lease a Bike consolidates contract management, order codes, and billing data into a single digital portal, making it possible to handle the administration alongside day-to-day operations. Employees can choose their bike from the entire range of models available at specialty retailers—from city bikes to cargo bikes. The comprehensive protection plan includes coverage for theft and damage, as well as budgets for inspections and wear and tear—supplemented by a Europe-wide mobility guarantee with 24/7 roadside assistance. If continued pay is interrupted—for example, during parental leave—the missed payment protection kicks in. For companies that want to start small, a single company bike for the employer is also an option.
Common pitfalls - and how to avoid them.
To ensure a smooth launch, you should keep a few points in mind:
Clearly define eligibility: Specify in writing who is eligible to participate, for example, after successfully completing a probationary period. The tax benefit is smaller for part-time employees.
Observe the minimum wage: Deferred compensation must not cause the gross salary to fall below the statutory minimum wage. Verify this before approving each order.
Plan for early contract termination: In the event of termination or a job change, it must be clarified whether the bike will be retained, returned, or the contract transferred. Including a provision in the bike-sharing agreement prevents disputes.
Fairness toward non-cyclists: Not all employees want a company bike. Offering a second benefit—such as a non-cash benefit or a transportation subsidy—prevents the perception of favoritism.
Set realistic expectations for savings: Savings of up to 40 percent compared to buying outright are possible, but depend on your tax bracket, income, and the price of the bike. Communicate using a range rather than a maximum figure.
Back to the small business mentioned at the beginning: When asked, “And what else do you offer?” the answer could be a company bike and a monthly in-kind benefit—two perks that, combined, cost less than a permanent pay raise but are much more noticeable in everyday life. This is precisely where the strength of bike leasing lies for small and medium-sized businesses: It’s not about the size of the budget, but about how well it fits the company’s needs. Those who start small, communicate clearly, and make adjustments after six months, you’ve already taken the most important steps.
Bike Leasing for Small and Medium-Sized Businesses: Frequently Asked Questions (FAQ)
Our author
Antje Thomas
Antje Thomas has been working as a marketing manager at Lease a Bike since 2023 and, drawing on her many years of expertise, helps with content creation, among other things. Her dream company bike, which she’s already riding all over town: a Riese & Müller Culture Mixte vario.