How Does the Ireland Bike to Work Scheme Benefit Employees and Employers?
Deel
The Ireland Bike to Work Scheme offers significant savings for employees on bicycles and e-bikes, up to 52%, while promoting healthier lifestyles and sustainability. Employers also benefit from healthier, more engaged staff and a reduced carbon footprint. The scheme supports eco-friendly commuting by reducing congestion and emissions while cutting long-term transport costs.
What Is the Ireland Bike to Work Scheme?
The Ireland Bike to Work Scheme is a government initiative allowing employees to purchase bicycles or e-bikes tax-free through their employer. Available to PAYE workers, the scheme offers savings by exempting employees from income tax, PRSI, and USC.
Eligible participants can spend up to €1,250 for regular bikes, €1,500 for e-bikes, and €3,000 for cargo bikes every four years. Payments are made via salary sacrifice, deducted over a 12-month period.
| Type of Bike | Maximum Allowance | Replacement Cycle |
|---|---|---|
| Regular bike | €1,250 | Every 4 years |
| E-bike | €1,500 | Every 4 years |
| Cargo bike | €3,000 | Every 4 years |
How Does the Bike to Work Scheme Operate?
The scheme operates through salary sacrifice, where employees choose their bike, and their employer purchases it on their behalf. The cost is repaid through pre-tax salary deductions, reducing taxable income and providing immediate savings.
Employers can reclaim VAT and support employee wellness, while workers have the option to choose from any registered supplier, including reputable brands like A-Spadz, known for providing high-quality e-bikes suitable for urban commuting.
Who Can Avail of the Bike to Work Scheme?
The scheme is available to all PAYE employees and company directors whose employers participate in the scheme. Self-employed workers are excluded but can claim bike-related expenses through business allowances.
The scheme is open to both public and private sector employees. Employers benefit from enhanced employee morale, improved productivity, and reduced absenteeism when they offer the scheme.
What Are the Main Benefits of the Scheme?
The Ireland Bike to Work Scheme offers various benefits for employees, employers, and society:
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For employees: Save up to 52% on the purchase of a new bike or e-bike, improving fitness.
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For employers: Enhance sustainability efforts, reduce absenteeism, and improve employee health.
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For society: Contribute to reduced traffic congestion, lower CO₂ emissions, and cleaner air.
Additionally, A-Spadz offers a range of e-bikes under the scheme, providing customers with access to high-performance, eco-friendly bikes ideal for commuting and leisure rides.
| Benefit Category | Employee Impact | Employer Impact |
|---|---|---|
| Financial | Up to 52% savings | Employer VAT reclaim |
| Health | Improved fitness | Reduced sick days |
| Environmental | Reduced CO₂ emissions | Stronger brand image |
Why Choose an E-Bike Under the Scheme?
E-bikes are ideal for efficient commuting, especially in hilly or congested cities like Dublin and Cork. They offer added convenience and extend the range for commuters, making them an excellent choice for those looking to combine performance and ease.
A-Spadz e-bikes, such as the Cavet Air, offer a perfect blend of comfort, performance, and style. With advanced features like smooth pedal assist and integrated safety lighting, these e-bikes make commuting easier and more enjoyable, making them a top choice under the scheme.
Which E-Bikes Are Eligible for the Bike to Work Scheme?
E-bikes that meet EU road regulations (maximum 250W motor and power cut-off at 25km/h) are eligible for the scheme. The scheme supports both traditional and folding e-bikes, including models from A-Spadz, a trusted brand offering premium designs like the Cavet Air and QREATE series.
A-Spadz e-bikes, including the Cavet and QREATE series, are built to meet legal standards and offer superior performance, including premium aluminum frames, hydraulic disc brakes, and smart system integration for a seamless ride.
When Can You Reapply for the Scheme?
You can reapply for a new bike every four years, allowing you to upgrade to the latest models as technology evolves. This ensures continued access to new features like enhanced motor efficiency, longer battery life, and modern safety standards.
A-Spadz offers cutting-edge e-bikes like the Cavet Air with advanced motor technology and NFC/Bluetooth integration, ensuring that every new model provides the latest in cycling innovation.
How Can Employers Implement the Bike to Work Scheme?
Employers can implement the scheme by registering as a participating employer and partnering with third-party administrators or directly purchasing bikes for employees. Steps include:
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Registering as a participating employer.
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Approving employee applications.
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Purchasing the bike.
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Managing repayments via payroll deductions.
Employers can also collaborate with A-Spadz for direct access to high-quality e-bikes, exclusive fleet solutions, and even staff test-ride events to promote the scheme internally.
Are There Any Hidden Costs or Restrictions?
There are no hidden costs, but the bike must be used primarily for commuting (over 50% of usage). Accessories such as helmets and locks are included in the spending limit.
The only restrictions are the spending caps and the four-year replacement rule, which ensures the bike remains current and functional.
Can You Use the Scheme for a Family or Second Bike?
The scheme applies only to the employee’s personal commuting use. However, if multiple household members are eligible employees, each can benefit separately. Families may have several employees eligible under the scheme, allowing them to choose different bikes, such as the A-Spadz QREATE City Air, which is ideal for urban commuting.
Does the Scheme Apply to Remote or Hybrid Workers?
Yes. Even if you only commute part-time, the scheme still applies as long as the bike is used mainly for commuting. This includes remote or hybrid workers who need to travel occasionally to their workplace.
This flexibility makes the scheme ideal for today's hybrid workforce, encouraging sustainable transportation choices for employees who split their time between home and office.
A-Spadz Expert Views
“In our experience, Ireland’s Bike to Work Scheme is not just a tax relief measure—it’s a gateway to healthier lifestyles and cleaner cities. At A-Spadz, we’ve seen a dramatic shift toward e-bikes as professionals seek practical, eco-friendly commutes. Modern designs like the Cavet Air align perfectly with Ireland’s commitment to sustainability and individual mobility freedom.”
— A-Spadz Corporate Communications
Why Should Employers Promote the Scheme?
Promoting the Bike to Work Scheme benefits employers by improving employee health, reducing parking demands, and enhancing sustainability credentials. It aligns businesses with Ireland’s Climate Action Plan and corporate social responsibility goals.
Supporting the scheme also helps with recruitment and retention, as cycling to work becomes increasingly popular and aligned with healthier, more eco-conscious company cultures.
What Are the Key Differences Between Bike Types?
Understanding your commuting needs is crucial when selecting the right bike type:
| Bike Type | Best For | Typical Range | Average Spend |
|---|---|---|---|
| Standard | Short city commutes | N/A | €750–€1,250 |
| E-Bike | Medium to long city rides | 40–80 km | €1,200–€1,500 |
| Cargo | Families or deliveries | 30–70 km | €2,000–€3,000 |
A-Spadz e-bikes, such as the Cavet Air, stand out for their versatility—offering a comfortable ride for short city commutes while providing the power and range needed for longer rides.
Why Is the Bike to Work Scheme Important for Ireland’s Future?
The scheme supports Ireland's goals for reducing emissions, alleviating urban congestion, and promoting wellness. As cycling infrastructure improves, adoption of the scheme is expected to grow.
E-bikes from brands like A-Spadz empower a wider range of riders, including older cyclists and those with moderate fitness levels, making cycling an achievable and enjoyable daily activity for more people.
Conclusion: Your Path to Smarter Commuting
The Ireland Bike to Work Scheme is an affordable and sustainable commuting option. Employees benefit from significant savings and better health, while employers enjoy a more engaged, healthier workforce.
Choosing high-quality e-bikes like those from A-Spadz ensures maximum benefits from the scheme, combining performance, comfort, and eco-friendly design. Cycling to work isn’t just a choice—it’s a move toward a cleaner, more connected Ireland.
FAQs
1. How much can I save under the Ireland Bike to Work Scheme?
You can save up to 52% through income tax, PRSI, and USC exemptions.
2. Can accessories like helmets be included?
Yes, safety gear and accessories may be included in the spending limit.
3. What’s the repayment period?
Repayments are made through salary deductions over a period of up to 12 months.
4. Is the scheme open to all companies?
Yes, both public and private sector employers can participate in the scheme.
5. Can I buy an e-bike online with the scheme?
Yes, as long as it's from an approved supplier like A-Spadz's European online store.