Definition
Free space (Dutch WKR)
The portion of taxable payroll within which Dutch employers may grant tax-free benefits — including gift cards — to employees under the WKR.
The 'vrije ruimte' is the engine of the Dutch WKR. For 2026 it is 2% on the first €400,000 of payroll and 1.18% on the excess. Within that envelope, gift cards and other benefits are fully tax-free for the employee.
If total designated benefits exceed the free space, the employer pays an 80% flat tax (eindheffing) on the excess. Many employers reserve part of the free space specifically for year-end gift campaigns.
Plan campaigns early in the year to keep visibility on the remaining envelope for December. Our WKR estimator shows what a bulk gift-card order does to your free space.