How much can you gift staff tax-free?

Below you'll find when a gift to staff is tax-free and what the work-related costs scheme (WKR) determines in that.

Is a gift to staff the same as wages?

Yes, in most cases. Because the gift arises from the employment relationship, the Dutch Tax Administration treats a gift, bonus or present to a staff member as wages in kind or in cash. Gift tax, which applies between, say, parents and children, doesn't apply here. Instead, the work-related costs scheme applies.

The free allowance determines how much you can gift tax-free

Within the WKR you reserve part of the payroll as free allowance, to spend on tax-free allowances and benefits for staff. As long as a gift stays within that free allowance, the employee pays no tax on it.

Free allowance in 2025 and 2026

The free allowance is 2% of the taxable payroll up to €400,000, and 1.18% over the remainder. With a payroll of €500,000, that comes to €8,000.00 plus 1.18% over €100,000, totalling €9,180.00 per year. This budget applies to the whole organisation, not per employee, and is shared across all tax-free benefits combined.

Targeted exemptions usually don't apply to a gift

Besides the free allowance, the WKR has targeted exemptions, for example for travel costs, training or relocation costs. A gift or present to staff doesn't fall under these. For a gift card, a gift package or another gesture, the free allowance always applies — not a separate exemption.

What if you exceed the free allowance?

If gifts to staff push you over the free allowance, you pay an 80% final levy as the employer on the amount above the threshold. The employee keeps the full value of the gift; the levy is borne by the organisation. So check at year-end how much allowance remains before making a gift.

A gift card as a practical solution

A gift card is one way to gift tax-free within the free allowance, provided the voucher isn't redeemable for cash. That way the employee receives the full net value, without the organisation incurring extra employer costs. For business owners who still have allowance left at year-end, this is also a way to put that remaining WKR budget to good use.