In Ireland, there’s one little-known tax perk that has a hugely positive impact on employee morale and employer cost-savings - and honestly, more companies should be using it.

It’s called the Small Benefit Exemption (SBE) and it’s one of the most flexible, feel-good, high-impact ways to reward your people… totally tax-free. And yes it’s 100% Revenue-approved.

That means you can recognise and celebrate your teams with up to €1,500 per employee, per year in a non-cash reward (like a gift card)… with no Income Tax, no USC, no PRSI.
Not for you. Not for them.

That’s a genuine win-win.
More value in their pocket. More impact for the same cost.
And a culture where appreciation is actually felt.

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How the SBE works

• It must be non-cash: Vouchers, prepaid cards, store cards, experiences — yes. Cash — no.
• It’s per tax year: January to December. Most companies use it at year-end or Christmas.
• All employees can receive it: No hierarchy. No seniority requirement. If you employ them, you can reward them.
• Up to five rewards per year: As long as the combined total does NOT exceed €1,500.

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‍What this actually means (a real example)

Let’s say you want to reward someone with €1,500.

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Through payroll:
Between tax, USC and PRSI - that €1,500 could land closer to half that value in net terms for someone on 40% tax.
You also pay employer PRSI.

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Under the SBE:
They get a clean €1,500 to spend.
You avoid extra payroll tax.

Same cost to you.
Almost double the impact to them.

That is smart, modern recognition in action. ‍

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Why employees love it:

• A genuine boost to buying power.
• More value than a taxed cash bonus.
• And it feels like a reward, not a payslip line item.

‍Why employers love it:

• Lower cost to deliver meaningful appreciation.
• Simple to administer.
• Zero complexity.

This is especially powerful for SMEs where every budget decision needs to count.
Recognition should never feel like a checkbox in December. It should feel like a celebration and the SBE helps make that easy.

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What can you give?

• Retail gift cards (groceries, clothing, lifestyle)
• Prepaid debit cards (with anti-cash restrictions)
• Restaurant / hotel / experience vouchers
• Essentially: things people genuinely enjoy using.
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A couple of watch-outs
If you provide more than five benefits, or if the total value exceeds €1,500, the entire value of the final payment in excess is taxable.
Keep basic records so you can stand over it with Revenue.

Making recognition matter - and last

Work is more human when people feel seen. The Small Benefit Exemption isn’t just a tax feature, it’s a simple, smart lever to create joyful, meaningful, motivating moments. It’s a tool that lets HR be strategic and positive - not simply compliant. And in a world where budgets are tight, expectations are high, and talent is mobile, the SBE is one of the most credible, modern ways to boost morale while protecting cost. This is where innovation meets impact. This is how you build a culture where appreciation shows up - clearly, tangibly, and tax-free.