Reviewed by: MyTaxRebate Team on 11 Mar 2026 | Authority: s.865 TCA 1997 | TDM Part 05-02-13
Quick Answer
The Revenue e-worker relief and the employer €3.20/day allowance are two completely separate ways to handle work-from-home costs in Ireland, but they are often confused. The €3.20/day is an optional, tax-free payment your employer can choose to make directly to you - it is not something you claim from Revenue.
In contrast, the e-worker relief is a tax deduction you claim from Revenue. It allows PAYE workers to deduct 30% of their qualifying home utility costs (electricity, heating, and broadband), apportioned to the days they work from home. Importantly, receiving the €3.20/day from your boss doesn't automatically stop you from claiming the e-worker relief.
What This Page Covers
- ✓What the €3.20/day employer allowance actually is and who pays it.
- ✓What the Revenue e-worker relief is and how it's claimed.
- ✓Why the two mechanisms are entirely separate.
- ✓When both can apply to the same worker simultaneously.
- ✓How to claim the e-worker relief for all open years (2022 to 2025).
Key Facts at a Glance
- ✓Employer €3.20/day allowance: An optional tax-free payment from employer to employee (not a Revenue claim).
- ✓E-worker relief: A Revenue deduction for 30% of qualifying home utility costs × WFH day proportion.
- ✓Both can apply to the same worker simultaneously - they do not cancel each other out.
- ✓The €3.20/day does not reduce the qualifying expense base for the e-worker relief calculation.
- ✓Open years under s.865 TCA 1997: You can currently backdate claims for 2022, 2023, 2024, and 2025.
Allowance Versus Relief: A Question of Coordination
Workers often frame this topic as a simple either/or choice: do I get the €3.20 a day or the e-worker relief? However, the real issue is how you coordinate the two. The employer allowance is a payroll payment, while the Revenue e-worker relief is a tax deduction built from your actual qualifying utility costs.
When you use a service like MyTaxRebate, we review how these two interact year by year so that reimbursed amounts aren't counted twice and unreimbursed costs aren't left behind. Understanding this distinction turns a confusing technical rule into a financially useful claim.
This coordination is especially important if your employer's policy changed over time. For example, you might have received no allowance in 2022, a flat daily allowance in 2023, and a different arrangement later on. We rebuild your claim around those real differences instead of applying a blanket assumption to all four open years.
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The Employer €3.20/Day Allowance Explained
The €3.20/day working from home allowance is a Revenue-approved payment that employers can make to employees. According to Revenue guidance, employers can pay up to €3.20 per day tax-free to staff who are required to work from home. It's meant to help cover the costs of home working. Crucially, this payment is made by your employer, appears on your payslip as a non-taxable allowance, and doesn't create any filing obligations for you.
You do not receive the €3.20/day through Revenue. It is not a tax refund, you can't claim it on your Revenue record, and it won't appear on any Revenue tax forms. It is entirely at your employer's discretion.
The Revenue E-Worker Relief Explained
On the other hand, the Revenue e-worker relief (detailed in TDM Part 05-02-13) is a deduction from your taxable employment income. It's calculated as 30% of your qualifying home utility costs - strictly limited to electricity, heating, and broadband - multiplied by the proportion of your working days spent at home. This deduction must be claimed directly through your Revenue record or by a tax agent on your behalf.
Unlike the €3.20/day, you have to actively submit a claim for the e-worker relief. The great news is that under s.865 TCA 1997, you can backdate this claim for four years. Currently, that means 2022, 2023, 2024, and 2025 are all open for review.
Maximise Your Total Refund
We check for WFH relief, flat-rate expenses, and medical costs across all four open years.
Tax Scenarios
Worker receives €3.20/day AND claims e-worker relief
A fully remote worker receives the €3.20/day employer allowance (approx. €3.20 × 240 days = €768/year). They also spend €2,400 a year on electricity, heating, and broadband. Because the €768 is a non-taxable cash payment, it doesn't stop them from claiming the e-worker relief on their remaining out-of-pocket utility costs from Revenue.
Worker receives partial utility reimbursement
An employer pays €40/month (€480/year) directly towards an employee's broadband bill instead of the flat €3.20/day. If the worker's total qualifying utilities are €2,400, the €480 reimbursement reduces their qualifying base to €1,920. If they work a 3-day hybrid week (60%), their deductible is €1,920 × 30% × 60% = €345.60, resulting in a tax credit of €69.12 per year.
Worker does not receive the €3.20/day
A hybrid worker whose employer chooses not to pay the €3.20/day allowance is in the exact same position when claiming the e-worker relief. The lack of an employer allowance doesn't change the Revenue calculation. The worker still claims 30% of their qualifying utilities apportioned by their WFH days.
Common Mistakes To Avoid
- ✗Expecting to receive the €3.20/day directly from Revenue. Remember, this is paid by your employer.
- ✗Assuming that because you get the €3.20/day from your boss, you can't also claim the e-worker relief. They are separate mechanisms.
- ✗Thinking the €3.20/day is the only WFH benefit available. The e-worker relief is typically more valuable for workers with significant utility bills.
- ✗Delaying your claim when the four-year window is still open. The 2022 claim year will permanently close on 31 December 2026.
When This Does Not Apply
Key Takeaways
- The €3.20/day is an optional, tax-free payment from your employer; you do not claim it from Revenue.
- The e-worker relief is a Revenue deduction for 30% of qualifying utilities × your WFH day ratio, claimed directly from Revenue.
- Both mechanisms can apply to you simultaneously - receiving the €3.20/day doesn't block you from claiming the e-worker relief.
- You can currently backdate your e-worker relief claims for 2022, 2023, 2024, and 2025 all at once through MyTaxRebate.
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Frequently Asked Questions
What is the difference between the employer €3.20 allowance and the e-worker relief?
The €3.20 per day allowance is an optional, tax-free payment made directly by your employer. The e-worker relief is a tax deduction you actively claim from Revenue based on 30% of your actual home utility costs.
Can I claim both the employer allowance and the e-worker relief?
Yes. Receiving the employer allowance doesn't prevent you from claiming the e-worker relief on your remaining out-of-pocket qualifying expenses. They are completely separate.
Does my employer have to pay the €3.20 per day allowance?
No, it is entirely optional. While Revenue allows employers to pay up to this amount tax-free, there is no legal obligation for them to do so.
How much is the e-worker relief worth compared to the employer allowance?
It depends on your bills. For workers with substantial utility costs, the e-worker relief can be very valuable. A fully remote worker paying €2,400 a year in utilities will receive roughly €144 in tax credits annually from the e-worker relief.
Can I backdate my e-worker relief claim for 2022?
Yes. Under the four-year backdating rule, claims for 2022, 2023, 2024, and 2025 can all be submitted simultaneously. However, the window to claim for 2022 closes on 31 December 2026.
