What is the 2020 cycle kilometre allowance and how does it work?
Since 2016, employers have been able to reimburse part of their employees' cycling expenses. This is a real boon for the many employees who use their two-wheeled vehicles every day to commute to work.
But since 1 January 2020, the rules governing the kilometre-based allowance for cycling have changed. Amounts, benefits, barometers, sustainable mobility package... the new conditions for cycle-to-work mobility are numerous.
How can you benefit from this kilometre-based cycling allowance ? What are the conditions? Who is the sustainable mobility package for, and how do you apply to your employer? Find the answers in this article.
What is the 2020 cycle kilometre allowance?
Bicycle kilometre allowance: definition
The kilometre-based cycling allowance, also known as the "IKV" or "prime vélo-travail"is financial assistance for employees who cycle to work.
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, namely :
- car-pooling
- electric vehicles (including electric bicycles)
- hybrid vehicles
- hydrogen-powered vehicles.
The 2020 kilometre allowance for bicycles is one of the many professional costs and expenses incurred by employees in the course of their duties.
A reminder of the law
The kilometre-based cycling allowance was introduced in 2016 with Decree 2016-144 of 11 February 2016 on the payment of a kilometre-based cycling allowance by private employers. 25 cents per kilometre.
However, several other regulatory articles provide a framework for the scheme, in particular the LOM law (Loi d'Orientation des Mobilités - Mobility Orientation Law), which stems from article L. 3261-3-1 of the French Labour Code on ecological transition.
It is not until 1 January 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: employees will no longer have to justify the number of kilometres travelled in order to benefit from the package.
You can find out more about the " 2020 sustainable mobility package" a little further down the article!
How can I benefit from the kilometre-based cycling allowance?
It's important to know that the cycle kilometre 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 who take advantage of the scheme 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 kilometre-based cycling allowance?
For the employee
Tax benefits: they pay no tax on their mobility package or on their cycle journeys. What's more, the IKV is included in their expense reimbursement, which is financially advantageous.
Ecological benefits: employees are healthier as a result of their physical activity. It reduces cardiovascular risks, anxiety and stress.
For employers
Tax benefits: companies pay no social security contributions on the 2020 kilometre allowance for bicycles. There is, however, a ceiling that 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 the need for sick leave.
More punctual employees : bad traffic and traffic jams are often the main reasons why employees are late. Cycling enables them to be quicker 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 kilometre allowance in 2020?
1. The allowance is optional
The 2020 cycle kilometre allowance is optional, and employers are free to decide whether or not they wish to introduce it in their company. 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 the specialised department with a declaration on their honour and a list of supporting documents that the employer will have defined in advance.
3. A fixed amount is determined
The amount of the kilometre-based cycling allowance is set at 25 cts/km. This rule applies to all types of workers, vehicles and sectors.
👉 It should be noted that all types of company can introduce the IKV as part of their transport expense reimbursement policy. There is no minimum number of employees.
Kilometric cycling allowance and sustainable mobility package
Sustainable mobility package: definition
The sustainable mobility package, also known as the "2020 kilometre allowance", is an optional flat-rate allowance paid to employees who use a sustainable means of transport for their business journeys.
👉 Companies that introduce this package are exempt from all contributions (for both the employer and the employee).
Concrete changes with the IKV
The sustainable mobility package came into being on 1 January 2020 and replaces the kilometre-based cycling allowance. It therefore retains the same characteristics and obligations, but with a few changes :
- No need for proof
Employees no longer need to provide proof of distance travelled. They do, however, have to provide a declaration on their honour. It should also be noted that the package remains optional.
- A strategic obligation for companies with more than 50 employees
Companies with more than 50 employees are now obliged to include the subject of environmentally-friendly mobility (mainly by bicycle) in their negotiations with the social partners.
- Can be combined with a public transport season ticket
The sustainable mobility package can be combined with the employer's contribution to the public transport season ticket. However, the tax advantage resulting from the two forms of assistance may not exceed the maximum amount between €400 per year and the amount of the reimbursement of the public transport season ticket.
How do I determine the amount of my lump sum and how do I claim it?
The amount of your allowance depends on how much 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 in proportion to the amount of time you work.
👉 Whether you use a conventional or electric bike does not affect the conditions for obtaining the sustainable mobility package.
💡 You can apply for the sustainable mobility package from your employer by providing him with a declaration on your honour. However, your employer is not obliged to pay you the allowance. This remains its greatest similarity to the kilometre-based cycling allowance: it is optional.
Article translated from French