Unions call for increase in tax-free voucher allowance to ease cost of living crisis

Unions have proposed that the value of tax-free gift vouchers which employers can give to staff should be increased to €1,000 to help people cope with the soaring cost of living.  

Siptu deputy general secretary, Gerry McCormack said the value of the vouchers currently allowed should double from €500 to help workers cope with energy hikes and the rising cost of living.

He said higher-value vouchers plus extra leave could be used as bargaining tools with employers where pay deals that do not keep pace with inflation have already been agreed.

Mr McCormack urged the Government to re-examine the voucher value as unions prepare to lodge pay claims matching inflation.

Siptu organisers are expected to meet on Thursday to re-examine their wage strategy.

Irish Congress of Trade Unions president Kevin Callinan recently indicated that demands for pay rises over 5.5pc may be on the way.

He said congress’s private sector committee had already twice upgraded its advice on private-sector pay since the end of last year, and he believes they will “have to do so again”.

Unions are now advised to seek increases in the range of 2.5% and 5.5% in line with the rate of inflation.

The Committee also called on the Government to relax the Small Benefits Exemption rules for 2022 in order to facilitate employers to cushion their staff from high prices and falling living standards through cash-free vouchers.

The Committee recommended the tax-free limit be increased to €1,000 for employees in receipt of weekly gross wages up to €1,462 per week.

ICTU also proposed that the value be spread over multiple bonus payments over the year (e.g. €100 per month March – December).