Bike Leasing in the Public Sector

Since January 1, 2024, approximately 850,000 unionized employees, who were previously excluded from bicycle leasing through salary conversion, have gained access to one of the most popular employee benefits. A collective bargaining agreement enables bike leasing in the public sector of the federal states.

By providing company bicycles, employers not only promote the health and well-being of their employees but also send a strong signal for modern and future-oriented personnel policies as well as for more corporate sustainability.

What was previously reserved only for municipal employees in the public sector now also applies to unionized employees at the state and federal levels: As part of the collective bargaining agreement concluded in December 2023 between employers and trade unions, not only were provisions made for wage increases and inflation compensation payments, but also a groundbreaking agreement on bike leasing.

Since January 1, 2024, the federal states as employers have the option to offer their employees bike leasing through salary conversion. The only exception is Hesse, as this federal state is not part of the TdL employers' association, meaning that the collective bargaining agreements do not apply there.

Since 2021, a collective agreement has allowed employers in the municipal public sector to offer bike leasing to all employees. With the conclusion of the collective bargaining round for state employees, the company bike regulation in the public sector will be extended to a total of more than 2.5 million employees.

Bike Leasing for Employees of Municipalities, States, and Federal Government - Here's Where it's Possible

Which public sector employers can offer their employees bike leasing through salary conversion:

Bike leasing is possible here:

Municipality

  • Unionized employees (TVöD)
  • Civil servants (LBesG)

States

  • Unionized employees (TV-L)
  • Civil servants and judges (LBesG)

Bike leasing is not yet possible here:

Federal Government

  • Unionized employees (TVöD)
  • Civil servants (BBesG)

The recent agreement in favor of company bicycles is another important step towards reshaping corporate mobility in the public sector towards more sustainable means of transportation. Half of all commuters have a journey to work of less than 10 km. Most people can easily cover these distances with a good bike or e-bike. With a company bike, most people are even faster at their destination.

How does e-bike leasing in the public sector work and what are the benefits for employees?

For a monthly payment, the leasing rate, employees are provided with a bicycle. After the leasing period expires, they return the leased bicycle. Unlike renting, the wear and tear of the leased bicycle are not included in the rates for leasing. As a result, the monthly costs are significantly lower.

E-bike leasing through employers is usually most beneficial through salary conversion. In this case, a small part of the monthly salary is converted into the leasing rate through the employer. Employees receive their chosen bike and are free to use it for business and private trips. Due to the lower gross salary, they pay less taxes. Employers, in turn, benefit from lower labor costs and satisfied and healthy employees.

Stefan Wendering
Stefan is a freelance writer and editor at NAVIT. Previously, he worked for startups and in the mobility cosmos. He is an expert in urban and sustainable mobility, employee benefits and new work. Besides blog content, he also creates marketing materials, taglines and content for websites and case studies.

Since January 1, 2024, approximately 850,000 unionized employees, who were previously excluded from bicycle leasing through salary conversion, have gained access to one of the most popular employee benefits. A collective bargaining agreement enables bike leasing in the public sector of the federal states.

By providing company bicycles, employers not only promote the health and well-being of their employees but also send a strong signal for modern and future-oriented personnel policies as well as for more corporate sustainability.

What was previously reserved only for municipal employees in the public sector now also applies to unionized employees at the state and federal levels: As part of the collective bargaining agreement concluded in December 2023 between employers and trade unions, not only were provisions made for wage increases and inflation compensation payments, but also a groundbreaking agreement on bike leasing.

Since January 1, 2024, the federal states as employers have the option to offer their employees bike leasing through salary conversion. The only exception is Hesse, as this federal state is not part of the TdL employers' association, meaning that the collective bargaining agreements do not apply there.

Since 2021, a collective agreement has allowed employers in the municipal public sector to offer bike leasing to all employees. With the conclusion of the collective bargaining round for state employees, the company bike regulation in the public sector will be extended to a total of more than 2.5 million employees.

Bike Leasing for Employees of Municipalities, States, and Federal Government - Here's Where it's Possible

Which public sector employers can offer their employees bike leasing through salary conversion:

Bike leasing is possible here:

Municipality

  • Unionized employees (TVöD)
  • Civil servants (LBesG)

States

  • Unionized employees (TV-L)
  • Civil servants and judges (LBesG)

Bike leasing is not yet possible here:

Federal Government

  • Unionized employees (TVöD)
  • Civil servants (BBesG)

The recent agreement in favor of company bicycles is another important step towards reshaping corporate mobility in the public sector towards more sustainable means of transportation. Half of all commuters have a journey to work of less than 10 km. Most people can easily cover these distances with a good bike or e-bike. With a company bike, most people are even faster at their destination.

How does e-bike leasing in the public sector work and what are the benefits for employees?

For a monthly payment, the leasing rate, employees are provided with a bicycle. After the leasing period expires, they return the leased bicycle. Unlike renting, the wear and tear of the leased bicycle are not included in the rates for leasing. As a result, the monthly costs are significantly lower.

E-bike leasing through employers is usually most beneficial through salary conversion. In this case, a small part of the monthly salary is converted into the leasing rate through the employer. Employees receive their chosen bike and are free to use it for business and private trips. Due to the lower gross salary, they pay less taxes. Employers, in turn, benefit from lower labor costs and satisfied and healthy employees.