Medical insurance plans and check-ups

Medical insurance relief

You may pay medical insurance premiums for your employees. This is a benefit in kind. They must pay Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on the gross premium. Your employee can apply to Revenue for a tax credit for the gross premium. See the Medical insurance relief tax credit section for more information.

Permanent Health Insurance (PHI) cover

You may take out an insurance policy to cover the cost of sick pay to your employees. If the policy is a general one to cover all employees, this is not a benefit in kind.

You may operate a scheme where you and your employees both contribute to the insurance premiums. This scheme must be approved by us. The tax relief granted on PHI contributions is subject to a maximum 10% of the individual's income for the year.

The combined contribution cannot be more than the 10% limit.

If the overall PHI contribution exceeds 10% of your employee's income, you must deduct PAYE, PRSI and USC from the excess over 10%.

If the policy is not approved by us, the total premium you pay is a benefit in kind.

In-house medical plans

You may have in-house medical plans which employees contribute to and claim from. This is not a benefit in kind. You may also contribute to the plan so that the aggregate claims by employees exceed their aggregate contributions in a given year.

If you employ or pay a retainer to a general practitioner, any benefit from this is not a benefit in kind.

Medical check-ups

You may pay for one medical check-up each year for each employee. This is not a benefit in kind.

If medical check-ups for your employees are required for their work, there is no yearly limit. This is not a benefit in kind.