Employers can now offer employees increased tax-free benefits in Ireland

Employers can now offer employees a tax-free benefit of up to €1,500 per year, an increase from the previous limit of €1,000. This benefit can be given in up to five separate payments and must be in the form of tangible goods or services. The Taxsaver Commuter Ticket Scheme and Bike to Work scheme also provide tax savings. Employees can use these schemes to cover transport costs or purchase bikes, with potential savings of up to 52% depending on their tax rate. However, the new rules emphasize that benefits must not be linked to salary reductions. Any perceived salary sacrifice will result in the vouchers being taxable, and unused allowances cannot be carried over to future years.