How Tax-Free Employee Benefits Cards Boost Staff Satisfaction

Tax-free employee benefits cards boost employee satisfaction by offering flexible, non-cash rewards that employees truly value.

Every company can offer a competitive salary, but in today's time, salary isn't enough. Opportunities are now more accessible than ever before. With global businesses just a click or call away, employees have the power to choose where they work more freely than any previous generation.

In such situations, what truly sets one employer apart from another isn't just pay; it is the benefits on offer. In fact, research shows that 88% of employees would choose a job with better benefits and lower pay over one with higher pay but fewer perks.

For employers, this raises the stakes. The job market is fierce, and retaining top talent requires more than wages. Companies need to offer meaningful and flexible employee benefits. That's why many forward-thinking employers are turning to tax-free employee benefits cards. A modern solution that serves as a financial advantage for both staff and business.

Why Employee Satisfaction Should Be A Priority For Employers

Employee satisfaction isn't just about keeping staff happy; it is directly tied to reputation, retention and productivity. When employees feel valued, businesses benefit from stronger loyalty, better performance and a healthier brand image. Here are some reasons why employee satisfaction should be a priority for employers:

1. Retains Reputation: Satisfied employees become advocates, while unhappy ones can damage an employer’s reputation online. Reviews on online platforms are now trusted as “sources of truth.” Research shows that workers who are happy with their benefits are 1.3x more likely to stay loyal to their employer.

2. Higher Retention: Turnover is expensive. Nearly 40% of employers believe staff leave in search of better benefits, and with the cost of hiring a new employee rising each year, keeping the best talent has never been more critical.

3. More Productivity: Employee burnout is rising, with 41% of workers reporting they feel burnt out. Burnt-out employees struggle to focus, underperform, and are more likely to seek new roles. By offering meaningful benefits, businesses can ease stress, boost morale, and keep productivity high.

Key Tax-free Benefits Available To Employees In Ireland

Revenue offers several tax-free benefits that employers can reward their team with. Understanding the tax-efficient ways to reward is crucial for maximising impact. Here are the key benefits Irish employers can offer tax-free:

1. Small Benefit Exemption Scheme

Under this scheme, employers can give up to five non-cash benefits per year to each employee. The combined value of these benefits must not exceed €1,500. If the reward amount exceeds the exemption limit, the entire amount becomes taxable.

To qualify for the Small Benefit Scheme, businesses must meet certain rules, such as:

• The gift must be a non-cash reward and must not be exchanged for cash
• The reward should not be in place of a salary sacrifice agreement

2. Other Non-Taxable Benefits

Aside from the Small Benefit Exemption Scheme, certain employee benefits remain non-taxable, including:

• Accommodation where the job requires one to live on-site
• Bicycles and safety equipment under the Cycle to Work Scheme
• Free canteen meals are provided to all stag
• Car parking
• Employer pension contributions to a Revenue-approved scheme
• Examination expenses where the qualification is in relation to the duty
• Entry visas and work permits
• Long-service awards for service of at least 20 years
• Medical services
• Security assets
• Travel passes

These benefits matter for employees because they receive the full value of their benefits without any tax deductions, which makes their reward more fulfilling. We have explained in-depth about the tax-free allowances and their conditions for an employee in Ireland. Find it here.

What Are Tax-Free Employee Benefits Cards?

A tax-free employee benefits card is a prepaid card that employers can fund and give to their staff to access their non-cash benefits. These cards work just like a regular debit card, but they are not linked to any bank account and qualify as a non-cash benefit.

If you are looking for a card like this for your Irish business, CleverCards offers digital employee benefit cards. These cards are Mastercard-powered, which means they can be used at over 50 million+ merchants worldwide, making it perfect for remote teams.

Moreover, with CleverCards, employees can also add their benefit cards to their Google Pay or Apple Pay so they can make payments both in-store and online. This feature makes this card invaluable since not all providers support both digital and offline payments.

How Tax-Free Employee Benefits Cards Boost Employee Satisfaction?

Employees today want flexibility, fairness and recognition. Tax-free employee benefits cards like the one offered by CleverCards power that. Here are some reasons why benefit cards boost employee satisfaction:

1. Freedom of Choice

When employees receive their benefit cards as a reward or quarterly bonus, they have the freedom to spend them anywhere they like, especially with the CleverCards Mastercard. From groceries to a dinner date, they can spend it however they like.

2. Maximum Value

Cash bonuses get added to the employee's payroll and are taxed as regular income tax. Employee benefits cards are tax-free, which means employees get to enjoy the full benefit of the card without any tax complications.

3. Instant Recognition

With CleverCards, employers can issue digital benefit cards instantly via email, alongside a personalised message. In moments like these, employees feel recognised and are motivated to work hard.

4. Higher Flexibility

Employers can offer employee benefits cards as a reward or as non-tax benefits like examination fees, meal cards, car parking, etc, offering both in-office and remote employees complete flexibility.

Build A Strong Employee Benefits Program

Having a strong employee benefits program in your organisation will set it up for long-term success. Begin by understanding your employees' needs and tax compliance. With CleverCards, businesses can move beyond outdated methods of employee benefits and avail fully compliant benefits that employees genuinely appreciate.

Fill out the form below to discover how CleverCards can help your business build a smarter employee benefits program.