Workride: helping employees save on bikes and E-bikes for their daily commute

Cycling to work is becoming increasingly popular in New Zealand—not only as a healthier commuting option but also as a way to reduce transportation costs and carbon emissions. One initiative helping accelerate this shift is Workride, a workplace benefit program that allows employees to purchase bicycles and e-bikes at a heavily subsidised cost.

By using a smart salary packaging model, Workride makes it easier and more affordable for employees to own a bike while supporting healthier and more sustainable commuting habits.

What Is Workride?

Workride is a New Zealand workplace benefit scheme that enables employees to buy a bike, e-bike, or scooter through their employer using a pre-tax salary sacrifice arrangement.

Instead of paying for a bike using after-tax income, employees redirect part of their gross salary (before tax) toward the purchase. Because the deduction happens before tax is calculated, the employee’s taxable income decreases—resulting in significant savings.

Through this approach, employees can typically achieve 32% to 63% cost savings compared with buying a bike outright.

How the Workride Scheme Works

The process is designed to be simple for both employers and employees:

1. Employer Registers for the Program

A company signs up with Workride to offer the benefit to its employees.

2. Employee Chooses a Bike or E-Bike

Employees can select their preferred bike from hundreds of participating retailers across New Zealand.

3. Employer Pays the Retailer

The employer pays for the bike upfront through the Workride program.

4. Employee Pays via Pre-Tax Salary

The employee repays the cost through a 12-month salary sacrifice, meaning the payments are taken from pre-tax income rather than after-tax income.

5. Ownership Options After 12 Months

At the end of the lease period, employees are typically offered options to keep the bike—often through a gifting process arranged by Workride.

Why Employees Can Save So Much

The savings come from several factors:

• Lower taxable income due to salary sacrifice

• Reduced PAYE and ACC levy payments

• Flexible repayment over 12 months

• No upfront payment required

Instead of paying tax first and buying a bike with what remains, employees effectively remove the tax step, significantly reducing the overall cost.

Benefits for Employees

1. Affordable Access to Bikes and E-Bikes

E-bikes can be expensive, but spreading payments across 12 months with tax savings makes them far more accessible.

2. Health and Well-Being

Cycling promotes physical fitness and can improve mental well-being—an increasingly important factor for workplace productivity.

3. Lower Commuting Costs

Replacing fuel, parking, or public transport costs with cycling can lead to long-term savings.

4. Sustainable Transportation

More cycling means fewer emissions and reduced traffic congestion.

Benefits for Employers

Offering Workride as a benefit can also provide advantages for organisations:

• Improves employee health and engagement

• Enhances company sustainability initiatives

• Supports staff wellbeing and work-life balance

• Helps attract and retain talent through innovative benefits

Employers simply facilitate the program while employees repay the cost through salary sacrifice, making the scheme largely cost-neutral for the business.

Supporting a Healthier and Greener Workforce

Workride reflects a growing global movement toward active commuting. By making bicycles and e-bikes more affordable, the program removes one of the biggest barriers to cycling: the upfront cost.

For employees, it offers a practical way to invest in their health while saving money. For employers, it provides a meaningful benefit that supports sustainability and workplace wellbeing.

As cities and organisations continue to look for smarter transport solutions, initiatives like Workride are helping transform how people commute—one ride at a time.

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