Tax‑free Christmas bonus Ireland 2026: give more, keep more
Updated 05/10/2026
Short answer
A cash Christmas bonus is taxed, so a higher‑rate worker keeps roughly half. Given as a non‑cash reward under the Small Benefit Exemption, the same amount reaches them in full, up to €1,500 per person each year.
The maths
Spend €500 on a cash bonus for a higher‑rate employee and, after employer PRSI and their income tax, PRSI and USC, they keep about €230. Spend €500 on a WorkPerks reward and they get €500.
Try your own numbers with the SBES calculator.
Plan the timing
Schedule rewards for the week before Christmas so they land when staff are shopping. Report each one to Revenue on or before the day it's given — WorkPerks prepares the file.
Check this year's allowance first
If someone already had rewards this tax year, their Christmas reward must fit what's left of their €1,500 and five rewards. WorkPerks shows each person's remaining allowance.
What your team really keeps
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
- Can a Christmas bonus be tax‑free in Ireland?
- Yes, if it's a non‑cash reward such as a gift card under the Small Benefit Exemption, within €1,500 and five rewards per person each year.
- When should I send Christmas rewards?
- Aim for early to mid December. You can schedule them in advance.
See what your staff would get
Open a sample reward in 10 seconds.
General information, not tax advice. Check with your accountant or Revenue for your situation.