Pyöräetu

Pyöräetu is a Finnish term that translates to "bicycle benefit" or "bike benefit." It refers to a fringe benefit offered by employers in Finland, allowing employees to acquire a bicycle for personal use through their employer. This benefit is typically structured as a leasing arrangement, where the employer purchases the bicycle and the employee uses it, with the cost of the bicycle and its maintenance deducted from their gross salary.

The primary advantage of the pyöräetu for employees is the cost-effectiveness. By paying for the bicycle through their salary before taxes, employees often save money compared to purchasing a bicycle outright or using after-tax income. This can make higher-quality or more expensive bicycles more accessible. Furthermore, the benefit encourages cycling as a mode of transportation, which has positive implications for employee health and well-being, as well as environmental sustainability.

For employers, offering a pyöräetu can be a way to attract and retain talent, promote a healthy workforce, and demonstrate corporate social responsibility. It can also contribute to a greener image for the company. The tax regulations surrounding pyöräetu are designed to ensure that it remains a genuine benefit. There are specific rules regarding the type of bicycles eligible, usage, and the duration of the lease agreement. The exact details and tax implications can vary, so both employees and employers often consult with tax advisors or the specifics provided by the benefit provider.