Dáil Éireann Debate, Wednesday - 6 May 2026
217. Deputy Darren O'Rourke asked the Tánaiste and Minister for Finance the reason the bike-to-work scheme is not available to those who are retired, on a pension and continue to pay tax; if he plans to change this position; and if he will make a statement on the matter. [32059/26]
View answerAs the Deputy may be aware, section 118(5G) of the TCA provides for the Bike-to-Work Scheme. This scheme offers an exemption from Benefit-in-kind where an employer purchases a bicycle and/or associated safety equipment for one of their employees (or directors) to use, in whole or in part, to travel to work.
The scheme was introduced as an incentive to increase the number of people commuting to work by bicycle.
Under section 118B TCA, an employer and employee may enter into a Revenue-approved salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a benefit such as those provided under the scheme.
A Benefit-in-kind is a charge to tax which arises where an employer provides an employee with a benefit, such as a bicycle, car or accommodation. These benefits have monetary value and are treated as taxable income. The Bike-to-work scheme provides for an exemption from this charge.
Therefore, the Bike-to-Work scheme is only applicable where the bicycle and/or related safety equipment is provided by an employer to either their director or someone in their employment.
Where an employer-employee relationship does not exist. Therefore, the scheme does not apply in the case of retired or self-employed individuals.
Likewise, salary sacrifice arrangements can only be entered into between an employer and a director or employee.
The scheme was implemented as tax-exempt benefit-in-kind in order to keep the implementation as simple as possible and reduce administrative burden for employers and employees.
While, at present, I am satisfied with the operation of the scheme, the Deputy should note that the Programme for Government 2025, "Securing Ireland's Future", does contain a commitment to, within the lifetime of this Government, conduct a review of the Bike-to-Work scheme, to boost take-up among all workers.
