Increase in remote working relief needed in Budget 2023, says HR expert

Kenneth Fox

There are calls to increase to remote working relief in the upcoming budget, according to a HR expert.

They said that €3.20 per day is not enough in current environment to cover or incentivise remote working.

With just four weeks to go to Budget 2023, chief executive of HR Buddy, Damien McCarthy has called on the Government to implement a measure in the budget that will increase the €3.20 per day.

Since January 2022, employees can claim remote working relief for 30 per cent of the cost of heating, electricity and broadband for days spent working from home.

Mr McCarthy said the Government must consider at least doubling the €3.20 per day in this year’s budget and also believes that there needs to be an alignment between what the employer can pay tax-free and what the employee can claim tax-free.

“It is a really good opportunity which will coincide with the new “right to request remote working” legislation in the Autumn and an opportunity for the Government to put the money where its mouth is in this regard."

"The cost-of-living crisis and stretched labour market are currently putting a lot of pressure on both workers and their employers. There are increased wage demands, a competitive war on talent, the cost of running remote working for both employers and employees, which make for serious considerations," he said.

Mr McCarthy called €3.20 per day "outdated" and the difference between what the employer and the employee are entitled to makes no sense in the first place.

"The current allowance will have no impact in making positive moves towards counteracting the expensive costs of setting up remote working and enticing employers towards helping their employees counteract against energy costs, childcare costs and in particular fuel costs for workers that are commuting. Counteracting commuter costs has a double-win because this could also have a positive impact on CO2 emissions," he said.

The HR Buddy founder says if a worker can be provided with €2,000 tax-free per annum, the new right to request remote working will be a piece of legislation with very little long-term impact and will be of very little benefit.