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An electric bike for an employee? Beware of social security contributions!

  • Writer: Paweł Gorzelec
    Paweł Gorzelec
  • Jul 10
  • 2 min read

More and more employers are seeking innovative solutions to support employee commutes. One popular trend is providing company electric bikes. They're an eco-friendly and convenient alternative to cars or public transport. However, it's worth remembering that such an "ecological incentive" may involve additional costs, particularly social security contributions. This is confirmed by the latest interpretation of the Social Insurance Institution (ZUS) from October 14, 2024 (DI/100000/43/839/2024).

When is a bicycle considered employee income?

Pursuant to the Personal Income Tax Act (Article 12, Section 1), the basis for calculating contributions is all income from employment, regardless of its form. This can be either a cash payment or a benefit in kind, such as a bicycle provided to the employee.


In this case, the entrepreneur purchased electric bikes to facilitate commuting. The bikes were his property, and the employees were responsible for operating and charging the batteries. The value of the benefit for the employee was determined on a lump sum basis – based on average rental prices, reduced by the employee's own costs.

Can contributions be avoided?

The entrepreneur considered that this benefit should benefit from exemption from contributions under § 2 section 1 point 26 of the Regulation of 18 December 1998, which allows, among other things , the use of certain items or travel for partial payment.

However, ZUS (Social Insurance Institution) did not share this position. In its interpretation, it stated that:

  • providing a bicycle to an employee does not fall within the scope of "purchase at lower than retail prices" or "transportation",

  • it does not matter that the work regulations contain provisions on payment or employee participation in operating costs,

  • the benefit of providing a bicycle free of charge is subject to full contributions.

What does this mean for companies?

For employers, this means one thing: if a company decides to provide electric bikes to its employees, it must take into account the need to add the value of this benefit to the basis for calculating social security contributions – even if the employee bears part of the operating costs.

Legal basis:

 
 
 

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