Examinations and courses

Examination awards 

Employers may give examination awards to their employees. This award is generally taxable. The employee must pay Income Tax, Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on the value of the award. The only exception to this is where the award is a repayment of allowable expenses.

Special Increments 

Employers may give their employees a special pay increment for passing an examination or to recognise another achievement. Any increase in pay is taxable. The employee must pay Income Tax, PRSI and USC on the amount paid.

Course or exam fees

Employers may:

• pay course and exam fees for employees
• or
• repay employees for fees they have paid. 

This benefit is not taxable if the course or exam is relevant to the business. 

A course is relevant to your business if it:

• is necessary for the duties of the employment
• or
• helps employees perform their current or future work duties more effectively.

If the course or exam is not relevant to the business, the benefit is taxable. The employee must pay Income Tax, PRSI and USC on the cost paid by the employer.

Other exam expenses

Certain expenses incurred while studying for and sitting an examination may be paid by an employer without deducting tax. However, all the following conditions must be met:

• The course or qualification must bear some relationship to the employee's duties.
• The amount paid is reimbursing necessary course and exam expenses only. 
• The payments can be vouched with receipts
• and
• appropriate governance and control mechanisms are in operation together with supporting documentation. 

Course materials not provided as part of the course fees, and certain travel expenses, may qualify as allowable expenses. For more information, please see Tax and Duty Manual (TDM) Part 05-01-01j. 

Where an employer reimburses an employee's purchase of technological equipment, this payment is taxable. Income Tax, PRSI and USC must be applied on the value of the benefit.