The Small Benefit Exemption (SBE) allows Irish employers to provide tax-free benefits to employees, provided certain conditions are met. As of January 2025, the exemption limit has increased to €1,500 per employee per tax year. (Irish Revenue)
Understanding the Small Benefit Exemption (SBE)
The SBE enables employers to offer non-cash benefits without incurring tax or PRSI contributions, provided the following criteria are satisfied:
- Value: You can award up to €1,500 in total, but each voucher must not exceed €1,000. This means you’ll need two vouchers to stay within these limits—for example, one for €1,000 and another for €500.
- Frequency: A maximum of two benefits can be provided per year, with a combined value not exceeding €1,500 per employee.
- Non-Cash: Benefits are not in the form of cash but can be in gift card/voucher form.
- Non-Contractual: The benefit is not provided as part of any contractual obligation or in recognition of services performed.
For more details, see Irish Budget 2025 Updates and HR Compliance Guidelines.
Maximising the Small Benefit Exemption (SBE) with digital gift cards
With the increased annual limit, employers have greater flexibility to enhance employee engagement and satisfaction through various tax-free benefits. Here are some strategies to consider:
- Regular small rewards – Distribute gift cards or vouchers for popular retailers as spontaneous rewards for exceptional performance or to mark special occasions.
- Seasonal gifts – Provide festive bonuses during holidays or festive seasons using digital gift cards to boost morale.
- Wellness incentives – Offer gym memberships, spa treatments, or wellness programme experiences using gift cards to promote employee well-being.
- Team building activities – Organise team lunches, workshops, or recreational outings to foster team cohesion and pay for them using gift cards.
For employee benefits businesses
At Tillo, we make it easy for employee benefits businesses to access digital gift cards from 2,000+ global brands - giving employers access to thousands of ways to make maximum use of the SBE scheme.
With one integration to our plug-and-go API, you can integrate gift cards seamlessly into your employee rewards program or explore Tillo StoreFront, the low-code way to get gift cards into your platform without delay!
For brands and retailers
The SBE scheme is also a fantastic opportunity for brands and retailers looking to tap into the fast-growing B2B market whether you have an existing gift card program or are looking to build one from scratch, our team of gift card experts can help you capture this additional revenue - up to €1500 per employee!
Explore how Tillo can help you boost revenue from SBE today
By effectively utilising the updated SBE, Irish employers can offer meaningful, tax-free perks that enhance employee satisfaction and engagement throughout the year. Are you capitalising on this revenue stream? Get in touch with us today to kickstart this opportunity.
