What is a Jobrad?
A Jobrad is a bicycle or e-bike that employees can get through their employer, usually through a leasing model similar to a company car. The company covers the leasing costs and lets its employees use the bike privately as well. It is often financed through salary conversion (Gehaltsumwandlung), in which part of the gross salary is converted into a benefit in kind. If the bike is also used privately, 1% of the list price is taxed as a benefit, much like a company car. Less often, the employer can buy the bicycle or e-bike outright and provide it to the employee.
The advantages for employees
1. Cheaper than buying privately: Through salary conversion, employees save taxes and social security contributions. This lowers the price considerably compared with conventional financing. They can also use the bike both for commuting and privately.
2. Better fitness and health: Cycling to work regularly keeps people fit and healthy. This supports personal health and also reduces stress-related sick days.
3. Eco-friendly mobility: By using a bicycle or e-bike to get around, employees help protect the environment. In big cities in particular, it is often faster than a car or public transport.
4. Insurance costs: In most cases the employer pays the insurance premium for the Jobrad, which reduces extra costs for employees. This can also be agreed differently, depending on the individual terms of the leasing contract or employment agreement.
The advantages for employers
1. Attractive employee benefit: A Jobrad as a benefit can make the company more attractive. It serves as an extra argument in recruiting and employee retention. This benefit goes down particularly well with younger talent and sporty employees.
2. Tax advantages: Providing a Jobrad receives favourable tax treatment and has a positive effect on non-wage labour costs. Employers can claim the leasing instalment as a business expense and benefit from a tax advantage.
3. A contribution to sustainability: Companies that offer their employees a Jobrad send a clear signal for sustainability and promote eco-friendly mobility. This supports the company's image. Customers and partners also increasingly value it.
How does the Jobrad model work?
The Jobrad model is usually handled through a leasing contract. The employer signs the contract with a provider and makes the bike available to the employee. There are several options:
- Salary conversion: The employee gives up part of their gross salary. The employer pays the leasing instalment. This reduces taxable income and leads to savings on payroll deductions.
- Employer-funded Jobrad: The employer covers the full cost of the Jobrad. This model is especially popular as an incentive for managers or for special occasions such as a 10-year work anniversary.
- Mixed model: A combination of both options in which employer and employee share the leasing instalment.
Conclusion
The Jobrad is more than a means of transport. It stands for modern mobility and sustainability in practice. It offers many advantages for both employers and employees. Companies that rely on innovative benefits and offer their employees flexible mobility solutions create added value. They also position themselves as an attractive employer on the job market.
Hop on, start pedalling and get going. With a Jobrad it really is that easy! 🚴♂️
