7 Countries That Pay You to Cycle to Work

More and more countries are ditching car‑centric commuting and paying people to cycle to work.

Beyond health and sustainability, direct financial incentives are now part of national transport and employment policies, from Belgium’s per‑kilometre bicycle allowance to the Netherlands’ tax‑free reimbursements, and France’s sustainable mobility package.

Why Countries Pay You to Cycle to Work

Countries pay you to cycle to work for several important reasons.

From a public health perspective, cycling reduces healthcare costs by improving cardiovascular health, lowering obesity rates, and decreasing workplace absenteeism.

Environmentally, replacing car commutes with bicycles leads to lower CO₂ emissions, which aligns with climate policy goals across Europe and beyond.

Additionally, promoting cycling helps improve traffic flow and urban livability, resulting in less congestion, smoother commutes, safer streets, and an overall higher quality of life in cities.

1. Belgium

Belgium’s bike commuting incentive is one of the most widely publicised examples in Europe.

• Employees in Belgium who cycle to work are entitled to a bicycle allowance paid by their employer. Many employers use a rate of about €0.25-0.28 ( 1 Euro = 1.0466 US Dollars) per kilometre (One kilometre is 0.6214 miles or 1093 yards or 3280.84 feet). This means that one mile is 1.6093 kilometres) for the commute.

• Some cyclists can earn up to around €800 per year net, depending on distance and frequency.

• This reimbursement is tax‑free and is paid alongside your salary.

Why this matters: It not only directly compensates riders but actively makes cycling economically attractive compared with driving or public transit.

Official government info: You can check local implementation and details via the Belgian Federal Mobility portal and regional resources.

2. Netherlands

The Netherlands, often called the Cycling Capital of the World, offers a tax‑free mileage allowance for bicycle commuting.

• Dutch law allows employers to give employees a tax‑free travel allowance of up to approximately €0.19–€0.23 per km for commuting, including by bicycle.

• This reimbursement is the same (tax‑free) as that for car commuting meaning cyclists benefit equally.

• The government also encourages companies to provide company bicycles and additional cycling perks.

Fun fact: A 6 km commute each way could net you roughly €40 per month tax‑free just for cycling.

Official resource: this portal explains the mileage allowance and conditions under the Netherlands’ bike and transport policy.

3. France

France has developed a modern employer‑sponsored incentive known as the Forfait Mobilités Durables.

• This scheme lets employers pay a sustainable mobility allowance that includes bike commuting.

• The allowance can cover bicycles (regular or electric), public transport, or even carpooling.

• In the past, France also had a direct “cycling kilometre allowance” that reimbursed about €0.25/km for bike commutes this evolved into the broader sustainable mobility package.

Official resource: The French Ministry of Transport and Service‑Public.fr explain how the sustainable mobility package works for employees.

4. Denmark

Denmark hasn’t established a national standard per kilometre payment for all workers but many municipalities offer financial incentives and subsidies for cycling to work or school.

• Copenhagen and other Danish cities strongly promote bicycle commuting, with local schemes that may include cash rewards, tax perks, or benefits for bike commuters and infrastructure users.

• For example, Denmark ranks very high on fiscal incentives overall when comparing European countries.

Official resource: While not centrally managed, Danish cycling policy documents from organisations like Cyklistforbundet.dk show fiscal incentives for commuters.

5. Germany

Germany doesn’t have a universal per‑kilometre payment at a national level, but it is rich in cycling incentives via employee and corporate benefits.

• Many employers offer bike leasing schemes that let employees obtain bicycles (including e‑bikes) tax‑advantaged.

• The cycling allowance and travel reimbursement systems also exist under broader business travel regulations in some regions detailed at around €0.30/km, historically.

German workplace culture increasingly encourages cycling, and tax incentives make it financially worthwhile.

Official resource: German Federal Ministry of Transport and Digital Infrastructure updates on employee bicycle benefits and leasing schemes.

6. Ireland

Ireland’s Cycle to Work Scheme doesn’t pay you per kilometre, but it’s a financial incentive that makes commuting by bike cheaper.

• Employees can buy bikes and equipment worth up to €1,500–€3,000 tax‑free through their employer, depending on bike type.

• The bike is paid for through salary sacrifice, meaning you save on taxes and national insurance.

Official resource: Visit Revenue, Ireland’s tax authority, to confirm eligibility and current limits.

7. United Kingdom

Like Ireland, the UK doesn’t pay you per kilometre but it incentivises bike commuting by reducing upfront costs.

• The UK’s Cycle to Work scheme allows you to get a bike and accessories tax‑efficiently through a salary sacrifice arrangement.

• Savers can achieve around 28–42% savings on bike purchases a major financial advantage for bike commuters.

Official resource: Check UK government guidance on the Cycle to Work scheme and approved providers (often available through Workwell Trust and Revenue & Customs guidance).

Bonus: Italy and Other Local Schemes

In Italy and in some other European countries city or regional incentives for cycling to work may exist. Certain cities like Florence offer €0.15–€0.20 per kilometre for bike commuting locally.

These programs depend on local councils and aren’t nationwide. Always check your city’s official transport or mobility website for regional cycling incentives.

Final Thought

No matter where you live, local incentives and employer benefits are steadily expanding, making cycling not only healthy and environmentally friendly, but increasingly rewarding for your wallet as well.