Irish employers are having to rethink company car and mobility policies as rising costs, evolving tax rules, electrification and increasing expectations around reward transparency make traditional approaches harder to sustain.
According to the latest Company Car survey by WTW (NASDAQ:WTW), 35% of companies in Ireland intend to review their company car policy within the next 12 months.
The research found company cars remain one of the most visible and valued elements of total rewards, but the benefit is becoming increasingly complex for employers to design, govern and justify.
As electrification reshapes the Irish company car landscape, 27% of Irish companies reviewing their policies say they intend to introduce more environmentally friendly policies or behaviours, while 10% expect to introduce more environmentally friendly cars, 20% to increase the company car benefit budget per employee and 30% to change the makes and models allocated.
Irish companies are continuing to favour low- and zero-emission vehicles, with just over 62% surveyed already placing a ceiling on CO2 emissions.
The challenge is becoming more pressing as employers review reward structures against a backdrop of pay transparency, gender pay gap reporting and wider scrutiny of how benefits are allocated across different employee groups.
According to the research, employers reviewing company car policies are primarily focused on aligning with market practice and remaining competitive, cited by 90% of Irish companies, while just over 36% are looking to reduce costs. Vehicle prices, financing costs, maintenance, tax complexity and supply chain disruption are all contributing to a more challenging total cost of ownership environment for organisations with car benefit programmes.
In Ireland just over 6% of organisations offer a company car, 26.5% offer only a car allowance, 35% offer both, and 32% offer no car benefit at all.
April McDonnell, Rewards Data Intelligence Director at WTW, said:
“Company cars are no longer a static benefit. They now sit at the intersection of cost, tax, sustainability, employee experience and reward governance. For Irish employers, the challenge is not simply whether to offer a company car, but how to design mobility policies that are fair, transparent, affordable and fit for a low-carbon future.”
The future of corporate mobility is unlikely to be defined by a simple choice between company cars and cash allowances. Instead, employers will need more flexible frameworks that can combine company vehicles, allowances, public transport support, shared mobility, cycling schemes and broader mobility budgets, depending on business need, employee preference and local infrastructure.
McDonnell added:
“The organisations that act now will be better positioned to manage cost, meet environmental and regulatory expectations, and provide benefits that feel relevant to a changing workforce. Company car policy is becoming part of the wider total rewards and sustainability conversation, and employers need the data and governance to support that shift.”
