The TaxSaver Commuter Ticket Scheme was established in Ireland in 2000 as an incentive for workers in some parts of the country to use public transport. You can avail of public transport commuter tickets if you are travelling for work by public transport bus or rail. The scheme is not confined to State-owned forms of public transport and can include private operators if they are approved transport providers.
The TaxSaver scheme is operated by approved transport providers in conjunction with the Revenue Commissioners. The scheme involves employers providing employees (including company directors) with bus and rail commuter tickets while saving on employer PRSI payments. Employees participating in the scheme benefit from reduced income tax, PRSI and Universal Social Charge (USC) payments.
Employees receive tickets either as part of their salary package (salary sacrifice), in lieu of an annual cash bonus, or as a benefit-in-kind. Savings arise because tickets are not subject to tax, PRSI or USC. Employees only have to pay tax, PRSI and USC on the “money” portion of their salary. Employer PRSI is also calculated on the “money” portion of the employee’s salary.