Effective January 29, 2025, Ireland has updated its subsistence rates for employees traveling for work.
Effective January 29, 2025, the Irish government has implemented revised civil service subsistence rates, impacting both day and overnight allowances for employees undertaking official duties away from their normal place of work. These adjustments aim to better align reimbursement rates with current living costs and ensure fair compensation for work-related travel expenses.
What Is Changing and what the effects on employers?
The revised rates are as follows:
5-Hour Daily Allowance:
€19.25. This is applicable for assignments lasting between 5 and 10 hours, provided the work location is more than 8 kilometers from the employee's home or usual workplace.
10-Hour Daily Allowance:
€46.17. This rate is for assignments exceeding 10 hours, with the same distance requirement as above.
Overnight Allowance:
€205.53 per night. This rate applies when an employee is on an overnight assignment at least 100 kilometers away from both their home and normal place of work.
Practical Example
Let’s illustrate how these rates apply with a straightforward scenario:
Scenario: Sarah is an employee based in Cork. On February 10, 2025, she has a business meeting in Galway.
Departure: Sarah leaves her home in Cork at 7:00 AM and arrives in Galway at 10:00 AM.
Meeting Duration: Her meeting runs from 11:00 AM to 4:00 PM.
Return: She departs Galway at 5:00 PM and arrives back in Cork by 8:00 PM.
Calculating Sarah’s Allowance:
Total Time Away: Sarah is away from her home for 13 hours (7:00 AM to 8:00 PM).
Distance: The distance between Cork and Galway is approximately 200 kilometers, satisfying the distance requirement for subsistence claims.
Given that Sarah’s trip exceeds 10 hours, she qualifies for the 10-Hour Daily Allowance of €46.17. This allowance covers her meal expenses during the trip.
Key Points to Remember:
Eligibility: To claim these allowances, the travel must be work-related, exceed the specified time durations, and meet the minimum distance requirements from both home and the normal place of work.
Overnight Stays: For overnight allowances, the location must be at least 100 kilometers away, and the stay should be necessary for business purposes.
Record-Keeping: Employees should maintain accurate records of their travel, including dates, times, destinations, and purposes, to support their claims.
These updated subsistence rates aim to ensure that employees are fairly compensated for expenses incurred during business travel, reflecting changes in the cost of living and travel-related expenses in Ireland.
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