What is the 2020 bicycle mileage allowance and how does it work?
Since 2016, employers have been able to reimburse part of their employees' bicycle commuting costs. A real boon for the many employees who use two-wheelers, every day for their home-to-work commute.
But since January 1, 2020, the rules for the bicycle mileage allowance have changed. Amount, benefits, barometers, sustainable mobility package... the new conditions for bike-to-work mobility are numerous.
How can you benefit from this bicycle mileage allowance ? What are the conditions? Who is eligible for the sustainable mobility package, and how do you apply to your employer? Find out in this article.
What is the 2020 bicycle mileage allowance?
Bicycle mileage allowance: definition
The bicycle mileage allowance, also known as the "IKV" or "prime vélo-travail"is a financial incentive for employees who commute to work by bicycle.
Its aim is to encourage employees to use more environmentally-friendly means of transport to get to work. This rule applies to all vehicles that are more protective of the environment, i.e. :
- car pooling,
- electric vehicles (including electric bicycles),
- hybrid vehicles,
- hydrogen-powered vehicles.
The 2020 bicycle mileage allowance is one of the many professional costs and expenses incurred by employees in the performance of their duties.
A reminder of the law
The bicycle mileage allowance came into being in 2016 with decree no. 2016-144 of February 11, 2016 on the payment ofa bicycle mileage allowance by private employers set at 25 euro cents per kilometer.
But several other regulatory articles frame it, notably the LOM law (Loi d'Orientation des Mobilités) stemming from article L. 3261-3-1 of the Labor Code on ecological transition.
It is only on January 1, 2020 that the sustainable mobility package becomes applicable to employees using a bicycle to get to their place of work.
👉 This package adds a significant advantage to the IKV: the employee will no longer have to justify the number of kilometers traveled to benefit from the package.
Find out more about the " 2020 sustainable mobility package" a little further down the article!
How do I benefit from the bicycle mileage allowance?
It's important to know that the bicycle mileage allowance is optional! But if employees are eligible, it can be introduced either :
- by company agreement,
- by unilateral decision of the employer after consultation with the works council,
- by unilateral decision of the employer.
Employees are not obliged to use their bicycles every day. They can alternate with another mode of transport, on bad-weather days for example.
What are the advantages of the bicycle mileage allowance?
For the employee
Tax advantages: they pay no tax on their mobility package or on their bicycle journeys. What's more, the IKV is included in their expense reimbursement, which is financially advantageous.
Ecological benefits: employees who take part in physical activity are healthier. This reduces cardiovascular risks, anxiety and stress.
For employers
Tax benefits: companies pay no social security contributions on the 2020 bicycle mileage allowance. However, a ceiling must be respected:
- 500 € per year per employee,
- 200 for the public sector.
Better-performing employees: by reducing stress and engaging in daily activity, employees are healthier and therefore more productive. It also reduces sick leave.
More punctual employees : bad traffic and traffic jams are often the main reasons why employees are late. Bicycles enable them to get to work more quickly and therefore less late.
Space-saving : Unlike cars, bicycles don't require a lot of space to park. This reduces the company's parking space.
What are the conditions for the bicycle mileage allowance in 2020?
1. The allowance is optional
The 2020 bicycle mileage allowance is optional, and employers are free to decide whether or not to introduce it in their companies. This applies in both the public and private sectors.
2. A sworn statement is required
Employees wishing to benefit from the IKV must provide their employer or a specialized service with a declaration of honor and a list of supporting documents that the employer will have defined in advance.
3. A fixed amount is determined
The amount of the bicycle mileage allowance is set at 25 cts/km. This rule applies to all types of workers, vehicles and sectors.
👉 Note that all types of companies can implement the IKV in their transport expense reimbursement policy. There is no minimum payroll requirement.
Bicycle mileage allowance and sustainable mobility package
Sustainable mobility package: definition
The sustainable mobility package, also known as the "2020 kilometer allowance", is an optional lump-sum allowance paid to employees who use a sustainable means of transport for their business trips.
👉 The company that implements this package is exempt from all contributions (for both employer and employee).
Concrete changes with the IKV
The sustainable mobility package sees the light of day on January 1, 2020 and replaces the bicycle mileage allowance. It therefore retains the same characteristics and obligations, with the addition of a few changes :
- No need for proof
Employees no longer need to provide proof of distance. They must, however, provide a sworn statement. It should also be noted that the package remains optional.
- A strategic obligation for companies with over 50 employees
Companies with more than 50 employees are now obliged to include the subject of environmentally-friendly mobility (mainly by bicycle) in negotiations with their social partners.
- Can be combined with public transport season tickets
The sustainable mobility package can be combined with the employer's contribution to a public transport season ticket. However, the tax advantage resulting from the two subsidies may not exceed the maximum amount between €400 per year and the amount of the public transport season ticket reimbursement.
How do I determine the amount of my package and how do I claim it?
The amount of your allowance depends on the number of hours you work in relation to the legal working week:
- More than 50%: you receive the same assistance as a full-time employee.
- Less than 50%: you will receive assistance proportional to the length of time you work.
👉 Whether you use a traditional or electric bike has no impact on the conditions for obtaining the sustainable mobility package.
💡 You can apply for the "forfait mobilités durable" from your employer by providing him/her with a sworn statement. However, your employer is not obliged to pay you the allowance. This remains its greatest similarity to the bicycle mileage allowance: it is optional.
Article translated from French