Revenue-compliant guidance based on Revenue Tax and Duty Manual Part 05-02-13; s.865 TCA 1997, updated for 2025. Revenue source →
The Revenue e-worker relief and the employer €3.20/day allowance are two completely separate mechanisms in Ireland, each worth approximately €86–€180 per year for a typical worker. The €3.20/day is a tax-free payment that an employer can choose to make directly to an employee — it is not claimed by the employee from Revenue and does not appear on any Revenue form. The e-worker relief is a deduction claimed by the employee from Revenue for 30% of qualifying home utility costs proportionate to WFH days. Both can apply simultaneously to the same worker. Understanding this distinction prevents the most common error in Irish WFH tax claims: expecting to receive €3.20/day paid out by Revenue when this is not how it works.
What This Guide Covers
- What the €3.20/day employer allowance actually is and who pays it
- What the Revenue e-worker relief is and how it is claimed
- Why the two mechanisms are entirely separate
- When both can apply to the same worker
- Why workers who receive the €3.20/day can still claim the e-worker relief
- How to claim the e-worker relief for 2022, 2023, 2024, and 2025
Key Facts
- ✓ Employer €3.20/day allowance: optional tax-free payment from employer to employee (not a Revenue claim)
- ✓ E-worker relief: 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: 2022, 2023, 2024, and 2025 (four-year backdating window)
- ✓ E-worker relief amount: typically €86–€180 per year depending on utility spend and WFH ratio
The Employer €3.20/Day Allowance Explained
The €3.20/day working from home allowance is a Revenue-approved employer payment. Revenue guidance states that employers can make a tax-free payment of up to €3.20 per day to employees who are required to work from home, to help cover the costs of home working. This payment is made by the employer, appears on the employee’s payslip as a non-taxable allowance, and does not create any Revenue filing obligation for the employee.
The employee does not receive the €3.20/day through Revenue. It is not a Revenue refund, it is not claimed through myAccount, and it does not appear on any Revenue form. It is an employer payment made at the employer’s discretion up to the maximum tax-free amount.
The Revenue E-Worker Relief Explained
The Revenue e-worker relief under Tax and Duty Manual Part 05-02-13 is a deduction from the PAYE worker’s taxable employment income. It is calculated as 30% of qualifying home utility costs (electricity, heating, and broadband) multiplied by the proportion of working days spent at home. The resulting deduction is claimed through Revenue myAccount or by a tax agent on the employee’s behalf.
Unlike the €3.20/day, the e-worker relief is a Revenue claim. It must be actively submitted to Revenue. Under s.865 TCA 1997, it can be backdated for four years — 2022, 2023, 2024, and 2025 are all currently open. The relief produces a tax credit of approximately 20% of the deductible amount for standard rate taxpayers.
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Worker receives €3.20/day AND claims e-worker relief
A fully remote worker receives the €3.20/day employer allowance (approximately €3.20 × 240 working days = €768/year). They also pay €2,400 in electricity, heating, and broadband bills per year. The €768 employer allowance is a non-taxable cash payment and does not affect the e-worker relief calculation. The worker claims the full 30% × 100% WFH ratio = €720 deductible; tax credit = €144/year. Over four years: €576 in e-worker relief, entirely separate from the employer allowance.
Worker receives partial utility reimbursement
An employer pays €40/month (€480/year) directly towards the employee’s broadband bill rather than the flat €3.20/day allowance. In this case, the reimbursed €480 reduces the qualifying broadband expense for the e-worker relief calculation. If the worker’s total qualifying utilities are €2,400, the qualifying base becomes €2,400 − €480 = €1,920. Deductible: €1,920 × 30% × 60% (3/5 hybrid) = €345.60; tax credit = €69.12/year.
Worker does not receive the €3.20/day
A hybrid worker whose employer does not pay the €3.20/day allowance is in exactly the same position for the e-worker relief. The absence of an employer allowance does not change the calculation. The worker claims 30% of qualifying utilities apportioned by WFH days, regardless of whether the employer pays the optional €3.20/day. The €3.20/day is entirely voluntary on the employer’s part.
Common Mistakes
- Expecting to receive the €3.20/day through Revenue. The €3.20/day is paid by the employer, not by Revenue.
- Assuming that receiving the €3.20/day employer allowance means you cannot also claim the e-worker relief. The two mechanisms are entirely separate and can both apply.
- Thinking that the €3.20/day is the only WFH tax benefit available. The e-worker relief is typically more valuable than the flat allowance for workers with substantial utility bills.
- Referencing 2020 as an open claim year. The 2020 window closed permanently on 31 December 2024.
When This Relief Does Not Apply
The e-worker relief does not apply to informal or voluntary home working without a formal employer requirement. Workers whose employer has fully reimbursed qualifying utility costs cannot claim the e-worker relief on those costs.
Self-employed workers cannot use the PAYE e-worker mechanism; they claim home expenses through the annual Form 11 self-assessment return.
Workers who are self-employed cannot claim the e-worker relief through the PAYE mechanism. The employer €3.20/day allowance also does not apply to self-employed workers because there is no employer-employee relationship. Self-employed workers claiming home-working costs do so through the Form 11 business expense mechanism under s.81 TCA 1997. MyTaxRebate focuses on PAYE workers and can advise on the PAYE element for workers with mixed income.
Key Takeaways
- The €3.20/day is an optional tax-free employer payment; the employee does not claim it from Revenue.
- The e-worker relief is a Revenue deduction for 30% of qualifying utilities × WFH day ratio, claimed directly from Revenue.
- Both mechanisms can apply to the same worker simultaneously; receiving the €3.20/day does not prevent claiming the e-worker relief.
- Claims for the e-worker relief for 2022, 2023, 2024, and 2025 can be submitted simultaneously through MyTaxRebate.
Claim Your E-Worker Relief for All Four Open Years
MyTaxRebate handles your full WFH claim end to end — all four years, all reliefs combined, submitted directly to Revenue.
Start My Claim →Related WFH Tax Relief Guides
Frequently Asked Questions
What is the difference between the employer 3.20 euro allowance and the e-worker relief?
The employer 3.20 euro per day allowance is an optional, tax-free payment made directly by the employer to the employee to help cover home-working costs. The employee does not claim this from Revenue; it is paid on the p...
Can I claim both the employer allowance and the e-worker relief?
Yes. The employer 3.20 euro per day allowance and the Revenue e-worker relief are completely separate. Receiving the employer allowance does not prevent you from claiming the e-worker relief. The e-worker relief is calcu...
Does my employer have to pay the 3.20 euro per day allowance?
No. The 3.20 euro per day employer allowance is entirely optional. Revenue has stated that employers may pay up to this amount tax-free, but there is no obligation on employers to do so. Many employers do not pay any wor...
How much is the e-worker relief worth compared to the employer allowance?
For most workers with substantial utility bills, the e-worker relief is worth more than the employer 3.20 euro per day allowance. A fully remote worker paying 2,400 euro per year in qualifying utilities receives 144 euro...
Can I claim the e-worker relief for 2022 even though it was years ago?
Yes. Under s.865 TCA 1997, the e-worker relief can be backdated for four years. In 2025, the four open claim years are 2022, 2023, 2024, and 2025. Claims for all four years can be submitted simultaneously through MyTaxRe...
