Employer
How Employers Can Provide Taxsaver Tickets
Your employees can achieve significant savings on the cost of commuting when they receive an Annual or Monthly Taxsaver ticket — in many cases up to 52%.
Your business benefits too. When you deduct the ticket cost from an employee’s salary, your company saves 11.15% on Employer PRSI.
There are three ways you can assist employees in receiving a Taxsaver ticket:
1. Salary Sacrifice
Employees can reduce their gross salary by the cost of their Taxsaver ticket.
This lowers the taxable portion of their salary and creates immediate savings.
Example
- Employee earns €30,000 gross salary
- Annual Taxsaver ticket costs €1,800, deducted from gross salary
- New taxable salary becomes €28,200
This option is simple, popular, and fully compliant with Revenue rules.
2. In Place of a Cash Bonus
Employees can choose to receive a Taxsaver ticket as part of their annual bonus.
This is an excellent option for regular commuters who want to maximise tax savings.
Example
- Employee receives an annual bonus of €2,000
- Annual ticket cost: €1,800
- Only the remaining €200 of the bonus is taxable
Receiving a Taxsaver ticket instead of cash provides substantial net savings for the employee at no additional cost to you.
3. Addition to Salary
You may choose to add the ticket value to the employee’s package as part of a retention or reward initiative.
This is especially useful for:
- Employee retention strategies
- Reducing on-site parking demand
- Supporting sustainability and commuter-friendly policies
To comply with Revenue’s rules on benefit-in-kind exemptions and salary sacrifice, the following conditions must be met:
- There must be a bona fide and enforceable change to the employee’s terms and conditions (i.e., choosing a benefit instead of salary).
- The change cannot be retrospective and must be documented in writing.
- A sample alteration form is available on the Taxsaver site.
- The employee must not be allowed to exchange the benefit for cash.
- The choice of benefit instead of salary may only be made once per year, and only with the employer’s consent.
- The full text of the Revenue Commissioners Tax Briefing document can be found on www.revenue.ie
Click here to read the Revenue terms and conditions.
