Salary sacrifice explained: Why the company bike is a win-win for both sides
Many benefits cost money. With company bike leasing, you save money—on both sides. The monthly cost is significantly lower than with a cash purchase—even with insurance and service included. This article uses figures and sample calculations to show why this is the case, how salary sacrifice works exactly, and why the model also pays off for Employers.
The principle: Why salary sacrifice saves money
With company bike leasing, employees pay for their bike from their gross salary rather than their net salary. The amount is therefore deducted before tax. This reduces taxable income – and thus income tax and social security contributions.
The result: although the monthly leasing rate is significantly higher, the net salary is only reduced by a fraction. The rest is "financed" by the savings in contributions.
In summary:
- The leasing rate is deducted from the gross salary
- Less gross income = less taxes and contributions
- The actual net burden is significantly lower
- Employers also save on social security contributions
Three scenarios compared
Pascal fährt seit 10 Jahren mit seinem City-Bike durch die Gegend. Neulich hat er das E-Bike eines Bekannten ausprobiert – und war begeistert. Jetzt möchte er selbst auf ein modernes E-Klapprad umsteigen. Seine Wahl: ein hochwertiges Modell von Bergamont für 3.500 €. Die Basisdaten von Pascal:
- Bruttogehalt: 3.300 €
- Steuerklasse: VI
- Wohnsitz: Bayern
- gesetzlich versichert, kirchensteuerpflichtig
Wie unterschiedlich sich die Kosten je nach Finanzierungsmodell entwickeln, zeigen die folgenden drei Rechenbeispiele.
- Scenario 1
Cash purchase without extras, without insurance
Pascal entscheidet sich für den Barkauf – schnell erledigt, keine Finanzierung, und scheinbar ganz unkompliziert. Eine Versicherung oder regelmäßige Wartung zieht er nicht in Betracht.
Position
Kosten
Kaufpreis (inkl. MwSt.) 3.500,00 € Versicherung und Service 0,00 € Gesamtkosten 3.500,00 € No insurance, no maintenance included – rarely recommended in practice. According to Wirtschaftswoche, you should expect to pay around $230 per year to replace wear-prone materials such as tyres, chains, or brake pads. (Source: Wirtschaftswoche) - Scenario 2
Cash purchase with insurance and service
Pascal will auf Nummer sicher gehen: Er schließt ein Versicherungspaket ab und nimmt regelmäßige Wartung in Anspruch. Schließlich soll sein neues Rad zuverlässig bleiben – ob bei täglichem Pendeln oder spontanen Ausflügen. Alle Kosten trägt er aus seinem versteuerten Einkommen.
Position
Kosten
Kaufpreis (inkl. MwSt.)
3.500,00 €
Absicherung (36 Monate)
370,59 €
Wartung und Service
214,20 €
Gesamtkosten
4.084,79 €
If you buy privately and have your bike insured and regularly serviced, you'll end up spending over €4,000 in three years. - Scenario 3
Company bike leasing with salary sacrifice
Pascal checks out his employer's company bike proposal: the same bike, but leased through salary sacrifice – including insurance, breakdown cover, and annual servicing. The fee is deducted directly from his gross salary, without any additional private expense. After 36 months, Pascal can purchase the bike at a fair residual value. Another point: Deutsche Dienstrad covers maintenance and repair costs on request. Depending on the service package, this can even be for an unlimited amount.
Including service, insurance, and final purchase of the bike:
Position
Cost
Leasing rate (gross)
$112.94 / month
Net charge
approx. $54.04 / month
Total costs over 36 months (net)
$1,945.48
Used purchase after leasing (estimated price)
$525
Total cost
$2,470.48
Approximately $1,800 cheaper than purchasing outright with insurance and maintenance.
Why this is also worthwhile for employers
It's not just employees who benefit—company bike leasing is also a worthwhile model for employers:
No additional costs
The leasing rate is deducted directly from the employee's gross salary. As an employer, you do not need to plan for any additional budget.
Savings on social security contributions
Your non-wage labor costs will also decrease, as no social security contributions are payable on the converted amount. With an employer contribution of approximately 21% in Pascal's example, the following savings result:
- Savings per employee: approx. €22.72/month
- Extrapolated to 50 employees: 50 × $22.72 × 12 months = $13,632/year
Attractive benefit – without administrative overhead
A company bike is a real added value for many employees. At the same time, digital platforms (at Deutsche Dienstrad) make the process simple and legally compliant for HR.
In summary:
Advantage | Employees | Employer |
|---|---|---|
Financial savings | ✔ Up to 40% | ✔ Lower social security contributions |
Insurance and maintenance | ✔ Included | ✔ No additional costs |
Motivation and loyalty | ✔ Higher | ✔ Attractive benefit |
Administrative effort | ✔ Minimal, as it is completely digitized | ✔ Minimal, as it is fully digitized and scalable |
From invoice to real benefit:
The figures show that company bikes are worthwhile. But there are even more benefits in everyday life—when employees are more motivated to commute, your carbon footprint visibly improves, and processes run smoothly thanks to digital platforms, reporting, and interfaces. Deutsche Dienstrad combines financial advantages with modern, sustainable mobility.