Claims for €1,000 tax-free vouchers lodged for 1,200 video game workers

A letter from a union to eight employers seeks the once-off payments to help staff through “this difficult winter”.

Known as a “small benefit exemption”, the value of the vouchers was doubled in the Budget.

The amount an employer can give workers rose from €500 to €1,000.

Giving the vouchers may appeal to employers under pressure to deliver cost of living increases, as they will not permanently push up their wage bill.

AIB and Bank of Ireland last month announced plans to give workers the €1,000 vouchers. More recently, Permanent TSB said it would give One4All gift vouchers to its staff in recognition of cost of living pressures.

Apple workers in Cork are also set to receive a €1,000 voucher before the end of the year as part of a pay package that includes a 9pc wage increase.

“As you will appreciate and understand there is a cost of living crisis affecting workers generally and your staff particularly relevant to you,” says the letter from Gareth Murphy, head of industrial relations and campaigns at the Financial Services Union.

“The Government has increased the €500 tax-free voucher that employers can provide staff up to €1,000 and is encouraging employers, who can afford to, to provide this €1,000 voucher to workers to help staff through this difficult winter.

“We ask that you consider this positively and confirm to your staff that you will make such a payment to help support them through difficult winter months with rising fuel, energy and food costs.”

Speaking to the Irish Independent, he said Danske Bank has also decided to give staff a voucher. The union is in talks with Danske and Ulster Bank on “inflation proofed” pay increases.

“Certainly, the technology sector can well afford the vouchers,” he said.

“We’ve been upfront with the banks that vouchers must not replace pay increases.”

Siptu has urged employers to give vouchers to offset spiralling living costs.

Gerry McCormack, Siptu deputy general secretary, said the union is encouraging its shop stewards to push for vouchers to assist workers during pay talks.

“Employers should utilise a rise in the tax-free limit for once off voucher payments announced in the recent budget to provide workers with €1,000 to help offset the rising cost of living,” he said.

“We are calling on employers to take advantage of the additional €500 of tax-free vouchers they can now give in order to alleviate the huge pressures that workers are under.”

Delegates backed a motion at a manufacturing division conference supporting industrial action in pay disputes “which are aimed at combating the cost of living crisis”.

In his budget speech, Finance Minister Paschal Donohoe said he would permit two vouchers to be granted by an employer in one year.