The short answer
Irish employers can put more money in their team's pockets at no cost through three Revenue-approved routes - TaxSaver commuter tickets, Cycle to Work and pension top-ups through payroll - plus by telling employees about the reliefs they can claim themselves, such as 20% back on health expenses.
At a glance
| What | What your team gets | Cost to you | Effort to set up |
|---|---|---|---|
| TaxSaver commuter tickets | Bus, rail, Luas or ferry passes paid from gross pay | Nothing; may reduce employer PRSI | Low |
| Cycle to Work | A new bike paid from gross pay | Nothing; may reduce employer PRSI | Low, with a scheme provider |
| Pension top-ups (AVCs) through payroll | Tax relief at their highest income tax rate | Nothing | Low, with a pension provider |
| Reliefs your team claims themselves | Money back on health costs, rent, fees and working from home | Nothing - just tell them | Very low |
1. TaxSaver commuter tickets
Your business buys an annual or monthly public transport pass and your employee repays it from gross salary, so they pay no income tax, USC or PRSI on that amount. Depending on their tax rate, that typically means savings of roughly a third to half of the ticket price.
- Passes must come from an approved transport provider.
- Repayments must be completed within 12 months.
- Your business doesn't pay employer PRSI on the salary given up.
2. Cycle to Work
Same principle, for a new bike and safety equipment used to get to work.
| Bike type | Limit |
|---|---|
| Standard bike | €1,250 |
| E-bike | €1,500 |
| Cargo or e-cargo bike | €3,000 |
- Each employee can use the scheme once every four years.
- Repayments must be completed within 12 months.
- A scheme provider can handle vouchers, paperwork and the upfront purchase, so there's no cash-flow hit for you.
- It's a Live Well win as well as a money one: more movement, every working day.
3. Pension top-ups through payroll
You can let employees add Additional Voluntary Contributions (AVCs), often through an AVC PRSA, deducted from pay before income tax. You don't have to contribute anything.
| Age | Maximum tax-relieved contribution |
|---|---|
| Under 30 | 15% |
| 30–39 | 20% |
| 40–49 | 25% |
| 50–54 | 30% |
| 55–59 | 35% |
| 60 and over | 40% |
- Relief is at the employee's highest income tax rate, on earnings up to €115,000.
- USC and PRSI still apply to the amount contributed.
- Ask a pension provider to set it up; most will do so at no charge to the business.
4. Money your team can claim themselves
These need nothing from your payroll. Telling your team about them is a genuine benefit in itself.
| Relief | What it gives back | How to claim |
|---|---|---|
| Health expenses | 20% of unreimbursed costs such as doctor and consultant fees, prescriptions and physiotherapy - for themselves and their family | Revenue myAccount, up to four years back |
| Rent tax credit | Up to €1,000 single / €2,000 couple for 2026, rising to €1,150 / €2,300 for 2027 and 2028 | Revenue myAccount |
| Third-level tuition fees | 20% of qualifying fees on approved courses, above an annual disregard | Revenue myAccount |
| Remote working relief | A share of heat, electricity and broadband costs for days worked from home | Revenue myAccount |
| Flat-rate expenses | A fixed annual deduction for certain jobs and trades | Revenue myAccount |
| Health insurance they pay themselves | 20% relief, applied automatically | Nothing to do |
Most people never claim their health expenses relief - that's money sitting with Revenue that belongs to your team.
What you can't do
Revenue only approves salary sacrifice for travel passes, Cycle to Work and shares under approved profit-sharing schemes. Swapping salary for anything else - gift cards, gym memberships, health plans - is taxed as normal pay. Treat any provider promising otherwise with caution.
How ViscaCare helps
ViscaCare is a digital health centre for your people and their families: Ask Mia to guide them, their health records and insights in one place, and Visca Points that reward living well. When life throws a speed bump, We've Got You - counselling, a Doctor seven days a week and trusted care partners.
It also helps members keep more of their money:
- Year-end health expenses summary. Members' records gather the health costs they've paid into a year-end summary, with figures ready to support their 20% claim - they submit the claim to Revenue themselves.
- One home for the whole household. Family costs count towards the claim too, and ViscaCare covers the household.
Your 30-minute checklist
- Sign up with a TaxSaver ticket provider or your local transport operator
- Register with a Cycle to Work scheme provider
- Ask your pension provider to offer AVCs through payroll
- Share this guide with your team, with a reminder to claim their health expenses and rent credit
- Talk to ViscaCare about giving your team a digital health centre for their whole family
So every business can say We've Got You.
A note on accuracy
This guide is general information based on Revenue rules and Budget 2027 announcements as at October 2026. It is not tax or financial advice. Budget 2027 also announced a review of the Cycle to Work and TaxSaver schemes in 2027, so check Revenue.ie or your adviser for the latest position.
Common questions
What tax-free benefits can Irish employers offer at no cost?
TaxSaver commuter tickets, the Cycle to Work scheme and pension Additional Voluntary Contributions through payroll all let employees pay from gross salary, saving income tax, USC and PRSI. The employer pays nothing and may save employer PRSI.
How much can an employee save with a TaxSaver ticket?
Because the ticket is repaid from gross salary, the employee pays no income tax, USC or PRSI on that amount - typically a saving of roughly a third to half of the ticket price, depending on their tax rate.
What are the Cycle to Work limits in Ireland?
€1,250 for a standard bike, €1,500 for an e-bike and €3,000 for a cargo or e-cargo bike, including safety equipment. Each employee can use the scheme once every four years, with repayments completed within 12 months.
Can employees claim tax relief on medical expenses in Ireland?
Yes. Employees can claim 20% back on unreimbursed health costs such as doctor and consultant fees, prescriptions and physiotherapy - for themselves and their family - through Revenue myAccount, up to four years back.
Can Irish employers offer salary sacrifice for anything?
No. Revenue only approves salary sacrifice for travel passes, Cycle to Work and shares under approved profit-sharing schemes. Swapping salary for anything else - gift cards, gym memberships, health plans - is taxed as normal pay.
Sources
- Revenue - TaxSaver commuter tickets
- Revenue - Cycle to Work scheme
- Revenue - Pension contributions and tax relief
- Revenue - Health expenses
Employment, tax and healthcare rules change. We review these pages regularly, but always confirm details with the official source or your own adviser before relying on them. This page is general information for employers - it is not legal, tax or medical advice.
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