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One of the biggest reasons employees choose the Bike to Work Scheme is simple: It can significantly reduce the real cost of buying a new bike or electric bike.

While many people know the scheme offers tax savings, fewer understand how those savings are calculated or how much they could actually save on a new commuter bike. Depending on your tax circumstances, the Bike to Work Scheme can reduce the effective cost of a bike purchase by hundreds of euro.

Whether you're considering a commuter bike, folding e-bike, hybrid bicycle, or electric cargo bike, understanding the potential savings can help you make a more informed decision.

Why Does the Bike to Work Scheme Save You Money?

Normally, when you buy a bike yourself, you pay using income that has already been taxed.

Under the Bike to Work Scheme, your employer purchases the bike on your behalf, and the cost is repaid through salary deductions. Because these deductions are made before Income Tax, PRSI and USC are applied, the overall cost of the bike is reduced.

This means the same bike can cost significantly less than if it were purchased outright.

The exact amount saved depends on your income and tax rate, but the principle remains the same: You're using pre-tax income to fund your purchase.

"How the Bike to Work Scheme Reduces Your Costs"

"Save Up To €780"

The amount you save depends on your individual tax situation, but the examples below provide a useful illustration.

For many commuters, these savings make upgrading to an electric bike far more affordable than expected.

Why Electric Bikes Often Deliver the Best Value

Although standard bicycles are eligible under the scheme, electric bikes have become increasingly popular among commuters for good reason.

Many riders who previously drove to work find that an e-bike allows them to:

• Travel longer distances comfortably
• Arrive at work without excessive effort
• Reduce fuel expenses
• Avoid parking costs
• Navigate traffic more efficiently
• Commute more consistently throughout the year

When the Bike to Work Scheme is combined with the ongoing savings of replacing car journeys, the long-term value can be substantial.

"Save Beyond The Initial Purchase"

What Factors Affect Your Final Saving?

Several factors influence the amount you ultimately save.

Your Tax Band

Generally, employees paying tax at a higher rate will see greater overall savings compared with those paying tax at the standard rate.

Purchase Value

Higher-value purchases often generate larger overall savings because the tax relief applies to a greater amount.

Include Accessories & Maximise Savings

Approved accessories purchased as part of the same transaction can also contribute to the overall value of the scheme.

Including these items at the quotation stage can help maximise the benefit available.

A Real-World Example

Imagine a commuter who currently drives 10 kilometres each way to work.

After switching to an electric bike purchased through the Bike to Work Scheme, they may benefit from:

• Reduced purchase cost through salary sacrifice
• Lower fuel expenditure
• Reduced parking fees
• Lower vehicle wear and tear
• Improved physical activity

For many commuters, the combined financial benefits continue long after the bike has been paid for.

Is the Bike to Work Scheme Worth It?

For most eligible employees, the answer is yes.

The scheme helps reduce the upfront cost of purchasing a bike while encouraging a healthier and more sustainable way to travel.

It can also make higher-quality bikes and electric bikes more accessible, allowing riders to choose a model that better suits their daily commute.

Whether you're cycling a few kilometres into town or travelling longer distances each day, the Bike to Work Scheme can make the transition more affordable.

"Save Money. Commute Better."

Ready to Calculate Your Potential Savings?

Before requesting a quote, consider:

• Your typical commuting distance
• Whether a standard bike or electric bike is the better option
• Any accessories you'd like to include
• The current scheme spending limits

Choosing the right bike from the start can help you maximise both: The savings available through the scheme and the long-term benefits of cycling to work.

The Bike to Work Scheme remains one of the most valuable employee benefits available in Ireland. By reducing the effective cost of purchasing a bike or an electric bike, it helps commuters make a practical investment in their daily travel.

Combined with lower commuting costs and the convenience of cycling, the savings can extend well beyond the initial purchase.

If you're considering a new bike, understanding how much you could save is the perfect place to start.

Explore Bike to Work Eligible E-Bikes at Pogo Cycles.