What is the Small Benefit Exemption limit for 2026?

€1,500 per employee per tax year, across a maximum of five non‑cash rewards.

What is the small gift exemption in Ireland?

Another name for the Small Benefit Exemption: tax‑free non‑cash gifts to employees up to €1,500 and five rewards a year.

How much can I give an employee tax‑free in Ireland?

Up to €1,500 per employee per tax year in non‑cash rewards, across a maximum of five rewards.

Can I give five rewards of €300?

Yes. Five rewards of €300 add up to €1,500, which is within both limits.

Is a cash bonus covered?

No. Cash, bank transfers and anything that can be turned into cash are taxed through payroll.

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Small Benefit Exemption 2026: Ireland's small gift exemption explained

Updated 19/10/2026

Short answer

In 2026, the Small Benefit Exemption (often called the small gift exemption) lets Irish employers give each employee up to €1,500 a year in non‑cash rewards, across a maximum of five rewards, with no income tax, PRSI or USC. The reward can't be cash, can't replace salary and must be reported to Revenue on or before the day it's given.

Small Benefit Exemption 2026 at a glance

Limit: €1,500 per employee per tax year. Number of rewards: up to five. Tax: no income tax, PRSI or USC for the employee, and no employer PRSI. Reporting: each reward to Revenue through ERR on or before the day it's given.

What the scheme allows

Each tax year, an employee can receive up to five small benefits with a combined value of up to €1,500. Inside those limits the employee pays no income tax, PRSI or USC, and you pay no employer PRSI.

Go over €1,500 or past the fifth reward and the whole excess is taxed through payroll as normal.

Small gift exemption or small benefit exemption?

They're the same scheme. Revenue calls it the Small Benefit Exemption, but many employers and accountants call it the small gift exemption or the tax‑free voucher scheme.

What counts as a small benefit

Gift cards and vouchers that can only be spent on goods or services. They can't be exchanged for cash, paid into a bank account or used against a mortgage, rent or bills.

It must be a genuine extra. Swapping part of someone's salary or bonus for a voucher (salary sacrifice) doesn't qualify.

Reporting it to Revenue

Since January 2024, every small benefit must be reported to Revenue through Enhanced Reporting Requirements (ERR) on or before the day you give it. WorkPerks prepares the ERR file for you.

What your team really keeps

Team size: 15Reward per person: €500

Their tax rate

Typical take-home from a payroll bonus

€233

As a WorkPerks reward — each person gets

€500

Extra in your team's pockets

€4,005

A qualifying Small Benefit Exemption reward is not subject to employer PRSI. This comparison is approximate and assumes 11.15% employer PRSI plus combined employee deductions of about 28% (standard) or 48% (higher). Up to €1,500 and five rewards per person each tax year. Not tax advice.

Common questions

What is the Small Benefit Exemption limit for 2026?: €1,500 per employee per tax year, across a maximum of five non‑cash rewards.
What is the small gift exemption in Ireland?: Another name for the Small Benefit Exemption: tax‑free non‑cash gifts to employees up to €1,500 and five rewards a year.
How much can I give an employee tax‑free in Ireland?: Up to €1,500 per employee per tax year in non‑cash rewards, across a maximum of five rewards.
Can I give five rewards of €300?: Yes. Five rewards of €300 add up to €1,500, which is within both limits.
Is a cash bonus covered?: No. Cash, bank transfers and anything that can be turned into cash are taxed through payroll.

See what your staff would get

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General information, not tax advice. Check with your accountant or Revenue for your situation.