Definition

Fringe benefit

Additional benefit beyond regular salary — for example a gift card, phone or leased car. Tax treatment varies sharply by country.

A fringe benefit is anything an employer provides in kind or as supplementary compensation. Gift cards fall into this category in most jurisdictions, each with its own exemption: WKR (NL), Sachbezug (DE), small benefit exemption (IE), trivial benefits (UK).

In Italy since 2024 a combined rule applies: up to €1,000 per year fringe-benefit-free for all employees and €2,000 for employees with children. Above that, fully taxed as wages.

For an international rollout you must pick the right structure per country. Our country pages and estimator help map each market to the right framework.

Use case
employee rewards
Related term
Sachbezug (Germany)
Related term
Werkkostenregeling (WKR)
Related term
Small benefit exemption (Ireland)
Related term
Trivial benefits (UK)

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