Pay-Per-Ride: Belgium’s Cycling Commute Allowance
Written by: Maxime Renson | October 14, 2025 | Time to read 5 min
Your morning ride just got a raise: Belgians are cashing in by cycling to work.
More about the Author: Maxime Renson, General Manager at Upway
Graduated in engineering and business, I spent 6+ years at Uber across six countries before joining Upway’s founding team in 2022 to launch the U.S. business. Outside work, I bike, run, play golf and padel, and swim with my son.
If your employer paid you to ride to work, would you cycle more? Cash is a powerful incentive and it works, nudging behavior and encouraging people to make their commutes more sustainable. Belgium introduced its tax-free cycling commute allowance years ago and has recently expanded the program. Let’s dive deeper into this promising cycling initiative to reveal how it works and just how effective it is.
What is a cycling commute allowance?
A commute allowance pays you a certain rate per kilometer depending on the mode of transport. In Belgium, there are actually mandatory commute allowances for public transit and bicycles, and optional rates for private cars. Commuters traveling to work by bicycle, e-Bike, or speed pedelec, can receive a maximum tax-free allowance of €0.35 per kilometer.
How Belgium’s commute allowance works
As of May 2023, all private sector employees can take advantage of the cycling commute allowance, given they ride to work at least once a week. The Belgium government increased the maximum allowance to €0.35 per kilometer in January 2024, while also introducing an annual limit for tax exemption of €2,500. This calculates to a total commute distance of about 7,142 kilometers in one year, or an average commute of 17 kilometers one way, given the number of working days per year.
To receive the allowance, there’s no required minimum distance. Beyond the cap of €2,500, commuting cyclists are still entitled to the cycling allowance of €0.35 per kilometer, but the excess amount is subject to social security and tax. Not all employers are required to pay the maximum €0.35/km allowance— there may be a lower rate or fixed amount per commute.
To receive the allowance, there’s no required minimum distance. Beyond the cap of €2,500, commuting cyclists are still entitled to the cycling allowance of €0.35 per kilometer, but the excess amount is subject to social security and tax. Not all employers are required to pay the maximum €0.35/km allowance— there may be a lower rate or fixed amount per commute.
Most but not all cyclists take advantage of the allowance— across the country, it’s used by 89% of employees that cycle to work in Flanders, 76% in Brussels and 78% in Wallonia (FOD Mobiliteit en Vervoer, 2019).
Cycling rates have increased among Belgian workers
Belgium is no stranger to cycling-friendly initiatives sponsored by the government and employers. Commuting allowances aren’t the only tools in Belgium’s toolbox to encourage cycling. In fact, a European Cyclists’ Federation report states that, “regarding cycling, Belgium has even the most generous tax rules… since the provision of a company bike free of taxes that is additionally subsidised for the employer, the payment of a tax-free cycling mileage allowance and the deduction of costs for cycling to work from income tax can be combined”.
Acerta’s ninth annual mobility barometer analyzed data from over 362,000 employees across Belgium. The data shows that over the last five years— as the commuting allowance has strengthened— the number of employees who are cycling to and from work in Belgium has increased by as much as 35%. There was a 5.4% increase in bicycle commutes from 2023 to 2024 alone. In 2025, about 15% of workers in Belgium commute exclusively by bike. Though it’s worth noting that cycling rates vary widely in Belgium, with 17.3% in Flanders and just 2.2% in Wallonia.
SD Worx researched European commuting behavior and found that 10% of Belgian employees commute by regular bike and 8% by electric bike. Journalist Claire Lemaire added that “SD Worx noted that cycling’s rise in Belgium was not only cultural but also supported by tax incentives and employer reimbursement schemes, which made bike commuting financially attractive”. Cycling may be combined with other forms of transport to get all the way to work. 41% of Belgian employees now cycle for part or all of their commute, compared to less than 1/3 half a decade ago.
Cars remain king, but cycling has bigger benefits
Commuting by car still remains the most popular choice with 52.3% of Belgians driving to work, and public transit, cycling, or a combination making up much smaller shares. However, cycling rates are increasing and data shows that cycling initiatives are worthwhile.
In fact, a Transport & Mobility Leuven report from 2022 explains, “every kilometre covered by a bicycle generates a net gain to society”. The net benefits from riding a standard bicycle are equal to €0.98 per kilometer while an e-Bike provides €0.22 in social gains. And even the lower per-kilometer gains from electric bikes are mostly compensated for because of the farther distances covered on pedal-assisted bikes. In stark contrast, a car trip corresponds to a social cost of €1.02 per kilometer.
The report clarifies, “the reason why cycling is so beneficial to society is mainly because of the positive health effects from regular cycling”. Lower emissions, improved public health, less congestion, and better safety are all positive effects from increased cycling rates compared to car use.
But how can we chase those social benefits and effectively achieve mobility goals? The comprehensive Belgian mobility report concludes that, “a very effective incentive to stimulate the use of a bicycle is a cycling commuting allowance”. Cycling allowances like the ones supported by the Belgian government are model examples of effective policy to accelerate bike adoption and make lasting change to mobility behavior.
In fact, a Transport & Mobility Leuven report from 2022 explains, “every kilometre covered by a bicycle generates a net gain to society”. The net benefits from riding a standard bicycle are equal to €0.98 per kilometer while an e-Bike provides €0.22 in social gains. And even the lower per-kilometer gains from electric bikes are mostly compensated for because of the farther distances covered on pedal-assisted bikes. In stark contrast, a car trip corresponds to a social cost of €1.02 per kilometer.
The report clarifies, “the reason why cycling is so beneficial to society is mainly because of the positive health effects from regular cycling”. Lower emissions, improved public health, less congestion, and better safety are all positive effects from increased cycling rates compared to car use.
But how can we chase those social benefits and effectively achieve mobility goals? The comprehensive Belgian mobility report concludes that, “a very effective incentive to stimulate the use of a bicycle is a cycling commuting allowance”. Cycling allowances like the ones supported by the Belgian government are model examples of effective policy to accelerate bike adoption and make lasting change to mobility behavior.
Ready to make your commute electric? Explore our refurbished e-Bikes collection
Key Takeaways
- Cash motivates positive change: Belgium’s €0.35/km tax-free cycling allowance makes sustainable commuting financially rewarding.
- Results you can pedal: Cycling-to-work rates have soared by over 35% since the program’s expansion.
- Model for Europe and US: The Belgian scheme shows that small, smart incentives can transform mobility and reduce emissions.
