Definition

Small benefit exemption (Ireland)

Irish rule: employers may give up to €1,500 per year (max five times) in non-cash benefits — typically gift cards — fully tax-free.

The Small Benefit Exemption (SBE) is Europe's most generous rule. Since 2024 the annual cap is €1,500 per employee, spread over up to five separate benefits per year.

Benefits must be non-cash — a gift card qualifies as standard. Cash is excluded. The employer pays no PRSI, USC or PAYE on the exempt amounts.

Many Irish employers use the SBE strategically: a large Christmas card in December and smaller tokens at birthdays or anniversaries.

Use case
employee rewards
Use case
employee rewards
Related term
Fringe benefit

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