€1,500 tax free??  Tell me more!!

In 2025, the Small Benefit Exemption in Ireland lets employers give their employees up to €1,500 worth of tax-free benefits each year. Here’s how it works in simple terms:

  1. What can you get?
    • Employers can give employees up to five separate non-cash benefits (like gift cards or vouchers) in a year up to the value of €1,500 in all.
  2. Why is it great?
    • Employees don’t pay any income tax, USC, or PRSI on these benefits.
    • Employers also save on employer PRSI.
  3. Rule to remember:
    • The benefits must be non-cash (e.g., no direct money transfers).

Example:

  • If your employer gives you a €400 gift card, a €500 voucher, and another €600 gift card in one year, all three are tax-free because their total is exactly €1,500.
  • But if they give you one voucher to the value of €1,600, the whole €1,600 becomes taxable.

This exemption is a handy way for employers to reward their staff without either side paying extra taxes!