Mileage allowance changes for civil servants from today

Changes to how civil servants are reimbursed for mileage expense — traditionally a barometer for how private sector employees claim mileage from employers — have come into effect.

Mileage allowance changes for civil servants from today

As of today, there will be a reduction in the reimbursement rate for the first 1,500km, an increase in the rate for those doing between 1,501km to 5,500km every year, and more bene?cial rates for cars with lower engine sizes and emissions.

It is the first time there has been an increase in the rates since 25% cuts were imposed in 2010. The mileage review is part of the Haddington Road Agreement and the new rates will be in place for at least three years.

The public servant rate has traditionally been used by private sector employers to calculate rates paid to employees.

Director of people advisory services at EY Ireland, Pat O’Brien said the new rates will have an impact on the pockets of all employees who incur business mileage expenses.

He said: “Up until now, employers and employees have been working from a system which is close to two decades old, therefore it is unsurprising that these changes have been introduced in order to address a range of economic and environmental considerations.

“While the devil is in the detail and it will take some time before employers and employees see the full impact of the new rates, in the short term, companies must ensure that their systems for reimbursing employees, and the rates that they pay, are adapted.”

He said employers will also need to tell employees about the changes and its impact on their wallet.

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