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Smart Employee Benefits Schemes In Ireland That Actually Retain Top Talent

~8min reading time –
employee benefit scheme

Businesses in Ireland can build smart schemes that are cost-effective, tax-compliant, and meaningful for both employers and employees.

Many companies think benefits are expensive. The truth? A well-designed scheme can deliver extraordinary value without inflating costs. In Ireland, businesses have access to tax-efficient tools, including the Small Benefit Exemption Scheme, digital-first cards, and flexible leave policies that employees appreciate.

The real challenge lies in creating a structure that balances employer budgets with employee expectations, and that’s exactly what a smart benefits scheme achieves. Let's look at the key aspects of a comprehensive employee benefits scheme.

What Makes A Benefit Scheme 'Smart'?

A smart benefit scheme is not about adding 'extra' perks, but maximising the value of those perks. The benefits should be strategically planned to attract and retain top talent and keep employees engaged.

In fact, 83% of employees who feel cared for report feeling loyal to their employer, showing just how powerful the right scheme can be. On top of that, the scheme should balance the employers' needs with the employees. Here are three key points to note:

1. Flexibility: Teams today span generations, from Gen Z to millennials and beyond. What one employee values may not matter to another. A smart scheme needs to recognise diversity and offer plans that are not one-size-fits-all.

2. Cost-effective: The best benefit scheme should maximise value for both employee and employer. The schemes should be tax-compliant and cost-effective while being impactful.

3. Simplicity: Lastly, the schemes should not feel like an administrative burden to both employers and employees. It should be easy to administer by leveraging digital platforms, and employees should find them easy to use.

Core Benefits Every Employer Must Provide

Irish employers are legally required to provide certain mandatory benefits, which form the foundation of any benefits scheme. These include:

1. Annual Leave: Minimum 4 weeks paid leave per year and 10 public holidays.

2. Carer's Leave: Up to 104 weeks of unpaid leave to care for a dependent, with job security guaranteed.

3. Parental Leave: 26 weeks paid maternity leave, 2 weeks paid paternity leave, 24 weeks paid adoption leave, along with unpaid leave options.

4. Pensions: Auto-enrolment Retirement Savings Scheme is being rolled out. Employees will be automatically enrolled on this scheme, but can opt out after 6 months.

5. Overtime: Extra pay, time off or allowances for Sunday work in case of overtime.

6. Social Insurance (PRSI): Mandatory employer and employee contributions to fund benefits like illness, maternity and pensions.

Non-Statutory Benefits Employees Value

Non-statutory benefits are not mandatory, but good to have. These are benefits that help your company stand out. Popular examples of non-statutory benefits include:

1. Medical Insurance Premiums: This includes health and dental insurance. Considered one of the most valued perks by employees, this benefit provides peace of mind that extends beyond the workplace. Further, 59% of employees say they would give up part of their salary for access to better healthcare benefits.

2. Professional Developments: Employees prefer access to learning and development tools for continuous growth. Benefits like conferences, online courses and professional certificates show a genuine interest in employees' growth.

3. Flexible Work Arrangements: Offer flexible work arrangements where it makes sense. This includes remote work and arrangements like upgraded technology that supports it.

4. Recreational Facilities: Employees also show interest in well-being perks like Gym membership, wellness stipends and mental health resources. The stakes are further high here, a survey suggests that 78% of employees say they would seek a new job if their health and wellness needs aren’t met.

Make The Most Of The Small Benefit Exemption Scheme In Ireland

Revenue offers an opportunity for employers to offer tax-free benefits to their employees. Under this scheme, employers can give employees five non-cash benefits of €1,500 each every year.

To qualify for the exemption scheme, the employer must comply with certain rules, such as:

1. The benefit must be 'non-cash' and should not be redeemed for cash.

2. The cumulative benefit of the five benefits must not exceed €1,500.

3. The employer can also provide a single benefit, provided it does not exceed the specified limit; if it does, the entire value of the benefit is taxable.

Revenue-Approved Non-Taxable Employer Benefits

Employers can offer certain benefits that are not taxable. These include:

  • Accommodation where the employee is required to live in their place of duty
  • Bicycles and safety equipment under the Cycle to Work scheme
  • Car parking
  • Employer pension contributions to a Revenue-approved scheme
  • Examination expenses where the qualification is related to the duty of the employee
  • Entry visas and work permits
  • Information technology equipment includes phones for business use
  • Non-cash long-service awards for at least 20 years of service
  • Medical services include a retainer to a general practitioner and one medical checkup per year
  • Travel passes

Building A Digital-First Employee Benefits Scheme In Ireland

Building a digital-first employee benefits scheme requires taking a strategic approach. To begin with:

1. Ensure Compliance: Cover statutory requirements like leaves, pensions, and social insurance.

2. Maximise Tax Efficiency: Use the Small Benefit Exemption Scheme to reward employees and save taxes. Keep up with Revenue's Enhanced Reporting Requirements (ERR).

3. Simplify Administration: Strategically minimise Admin and HR workload. Use solutions that are automated and digital.

CleverCards is an excellent choice for businesses wanting to build a smart employee benefits scheme. CleverCards offers prepaid employee benefit cards. These cards are powered by Mastercard and are tax-compliant under the Small Benefit Exemption Scheme.

Employers can send employees their digital benefit card instantly via email, which they can add to their mobile wallets and use to pay online or in-store.

Deliver Real Value With Your Employee Benefits Scheme

Workforces today are more diverse than ever before. Teams are not only multi-generational, spanning Gen Z to experienced professionals, but also increasingly digital and globally distributed. With such varied preferences and needs, a one-size-fits-all approach to employee benefits no longer works.

Companies must design schemes that are tax-compliant, flexible, and simple to execute. The key is to listen to employees. By taking real feedback on what benefits they value most, employers can create programmes that genuinely improve day-to-day work life. This approach doesn’t just enhance job satisfaction; it gives businesses a powerful edge in attracting and retaining top talent.

Want to learn how CleverCards can help you build a smart employee benefits scheme? Fill out the form below.