4 August 2025
By Elaine Murphy
elaine@TheCork.ie
Independent Ireland TD for Cork North Central Ken O’Flynn has sharply criticised the Government’s refusal to exempt gratuities from income tax, calling it “a tax on decency” and “an insult to the dignity of work.”
Speaking in response to a recent Dáil statement by Minister for Public Expenditure Jack Chambers — which confirmed there are no plans to alter the tax treatment of tips — Deputy O’Flynn accused the Government of “penalising low-paid workers for doing their jobs well.”
“It is astonishing that in 2025, the State still insists on taxing a thank-you,” the Cork North Central TD said. “A tip is not a wage and it’s not a bonus — it’s a gesture of appreciation from a customer to a worker. The notion that the Revenue Commissioners should reach in and claim a slice of that is indefensible.”
Under the current law, all tips — whether given in cash, by card, or included as a service charge — are treated as taxable income. This applies regardless of how they’re distributed.
“So whether a fiver is left on a saucer or a few euros is added to the bill, the Government wants its cut,” O’Flynn said. “It’s punitive and profoundly unfair on minimum wage workers already struggling with the cost of living.”
Deputy O’Flynn is now calling for a full exemption from PAYE, USC and PRSI for all genuine customer gratuities, regardless of how they’re paid.
“If the State genuinely believes in rewarding effort and supporting workers, then it should leave people’s tips alone,” he said. “Other countries show respect for their service workers. It’s time Ireland did the same.”
He concluded: “Taxing tips is petty, punitive and profoundly unfair. The Government must reverse this policy — not tweak it, not regulate it, but abolish it entirely.”
Ends