In recent years, cycling has gained popularity across Ireland, not just as a leisure activity but also as a smart and sustainable way to commute. Whether it’s avoiding the daily traffic grind, cutting costs, or making a greener choice, more Irish workers are choosing two wheels over four. Supporting this shift is the Irish Government’s Bike to Work Scheme, a practical initiative that helps employees afford a new bicycle and essential gear through tax savings.

This guide covers everything you need to know about the scheme, its benefits, how to apply, and why cycling to work is gaining momentum across the country.

What Is the Bike to Work Scheme?

The Bike to Work Scheme was introduced in Ireland to encourage more people to cycle to work. Through a salary sacrifice arrangement, employees can purchase a bicycle and accessories up to the value of:

• €1,250 for standard bikes

• €1,500 for electric bikes (e-bikes)

Instead of paying for the bike upfront, your employer covers the cost, and you repay the amount from your gross salary over a 12-month period. Because these deductions happen before tax and PRSI, you can save up to 52% off the retail price, depending on your income level.

Why Cycling to Work Makes Sense in Ireland

Financial Savings

With the rising cost of fuel, parking, and public transport, cycling can significantly reduce monthly commuting expenses. The scheme allows you to buy a quality bike without a large initial payment, and the tax savings make it even more affordable.

For example, if you purchase a €1,000 bike and pay the higher rate of tax, you’ll only end up paying around €490 over the course of the year.

Health and Fitness

Cycling builds cardiovascular fitness, boosts mental wellbeing, and provides low-impact exercise that fits easily into a daily routine. Just 30 minutes of cycling a day has been linked to reduced risks of heart disease, diabetes, and depression.

Environmental Benefits

Cycling to work helps cut carbon emissions and reduce air pollution—an important step towards meeting Ireland’s climate goals. Transport is one of the largest sources of greenhouse gas emissions in Ireland, and each person who switches to a bike for commuting helps bring that figure down.

Time Efficiency

In busy urban centres like Dublin, Cork, and Galway, cycling is often faster than driving or using public transport during rush hour. It also eliminates the need for parking, which can be both costly and inconvenient.

How to Use the Bike to Work Scheme

1. Select Your Bike and Gear
   Visit a registered bike retailer and choose a bicycle and accessories within the scheme’s value limits. Accessories can include helmets, lights, locks, high-visibility clothing, and panniers.

2. Get a Quotation
   Ask the retailer to provide a detailed quote listing all items. Submit this to your employer.

3. Employer Pays the Retailer
   Once approved, your employer pays the retailer directly and owns the bike during the repayment period.

4. Salary Deductions Begin
   Your employer deducts regular payments from your salary over 12 months.

The scheme can only be used once every four years, so it's worth selecting a reliable, good-quality bicycle that will last.

Growing Cycling Trends in Ireland

Cycling is on the rise throughout Ireland. According to the National Transport Authority, Dublin saw a 45% increase in cycling between 2019 and 2023. Other cities like Limerick and Waterford are also seeing a surge in cycling, supported by expanded bike lanes, traffic-calming measures, and increased public awareness of environmental issues.

During and after the pandemic, many people discovered the benefits of cycling, both for health and convenience. Greenways, such as the Waterford Greenway and the Royal Canal Greenway, have made cycling more attractive in both rural and urban settings.

Government funding for active travel has also grown significantly, with local authorities improving infrastructure and accessibility to make cycling safer and more enjoyable.

Choosing the Right Bike for Your Commute

Your choice of bike will depend on the type of commute you have. Here are the most popular options under the scheme:

• Hybrid Bikes – A great all-rounder for city and suburban commuting.

• E-Bikes – Ideal for longer journeys, hilly routes, or those who want a bit of extra help.

• Road Bikes – Designed for speed and efficiency on paved roads.

• Folding Bikes – Useful for commuters who also use trains or buses.

Accessories such as pannier bags, waterproof clothing, lights, and a quality lock can also be included in the scheme, provided the total cost stays within the set limits.

Supporting Retailers

Bike shops around Ireland have embraced the scheme, with many offering tailored packages and expert advice. Participating retailers often have dedicated in-store or online guides to help customers navigate the process.

This presents a strong opportunity for local bike shops to build lasting relationships with customers. By helping people get set up with their new bikes, accessories, and servicing plans, they position themselves as long-term cycling partners.

How Employers Benefit

Employers can also gain a lot from offering the scheme to staff. It promotes physical activity, reduces sick days, and enhances employee satisfaction. Additionally, encouraging cycling reduces demand for parking spaces and shows a commitment to sustainability goals.

Employers are not required to run the scheme, but those that do often find it improves staff morale and demonstrates their support for healthy, green commuting.

Safety and Commuting Tips

If you're considering cycling to work in Ireland, here are a few tips to make the journey safe and pleasant:

• Wear a helmet and reflective gear to increase visibility, especially in winter.

• Use front and rear bike lights—they’re mandatory during hours of darkness.

• Check your route in advance. Apps like Cycle Planner Ireland and Google Maps offer cycling-specific directions.

• Maintain your bike regularly for safety and performance.

• Lock your bike securely using a high-quality U-lock or chain, especially in urban areas.

Common Questions

Can I use the scheme if I work part-time?
Yes, as long as your employer offers the scheme and your salary can support the deductions.

Is there a minimum distance I must cycle to work?
No. Whether you cycle 1 km or 15 km, you’re eligible.

Can I use the bike for leisure as well as commuting?
Yes, although the primary purpose must be for commuting to and from work.

Are second-hand bikes covered?
No, the scheme only applies to new bikes and accessories purchased through participating retailers.

Final Thoughts

The Bike to Work Scheme is a win for everyone. Employees save money, stay active, and cut down on emissions. Employers gain healthier, happier staff and demonstrate environmental responsibility. Retailers see increased footfall and long-term customer engagement.

With improved infrastructure, strong government support, and a cultural shift toward sustainability, there’s never been a better time to start cycling to work in Ireland. Whether you're in a city or rural town, taking part in the scheme is a smart, sustainable choice.

So, dust off your helmet, check out your local bike shop, and start planning a commute that’s good for your wallet, your health, and the planet.