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Rewarding Employee Loyalty This Christmas With Small Benefit Exemption

Posted on 17 November 2022
Read time 1 mins
Author Sophia 🌱

As the countdown to Christmas begins, it’s time to start thinking about how you’ll reward your employees this festive season. For businesses in Ireland, an increase in the Small Benefit Exemption scheme has just made that a whole lot easier. 


What Is The Small Benefit Exemption Scheme?


Small Benefit Exemption (SBE) allows employers to give employees a non-cash bonus/reward without paying income tax, PRSI, or USC. 


Until recently, the Finance Minister set the maximum reward amount at €500 per employee, but this value has just been increased to €1000, and you can split the amount across two vouchers.


Learn more about the Small Benefit Exemption Scheme 


Using SBE To Reward Employee Loyalty


Whereas a traditional cash bonus is subject to income tax, PRSI, and USC, the vouchers and gift cards given to employees under the Small Benefit Exemption are tax-free on both sides. 

For businesses, this means paying less to reward your employees, and for employees, this means receiving 100% of your non-cash bonus! 


Companies can save 57% when gifting using SBE
Employers can pay up to €2313.54 to give an employee a net €1000 cash bonus. With SBE, they pay only the value of the gift card or voucher.


While the Small Business Exemption scheme isn’t anything new, the limit increase from €500 to €1000 now makes it a great alternative to a salary-based bonus and a viable way to help employees with the cost of living. 


What Would Your Employees Do With €1000 Tax-Free?

With prices increasing and Christmas on the way, the recent changes to SBE allow you to reward loyalty and incentivise your workforce by giving them €1000 tax-free before the end of the year. 


Buy them Christmas dinner with a supermarket Gift Card, or give them the gift of choice with a Choice Link, letting them choose how to split and spend their bonus in a way that works best for them. Whether at their weekly food shop, a meal out, or Christmas gifts for the family. The option is yours; the choice is theirs. 


How Does Tillo Fit Into The SBE Scheme?

Our innovative platform uses the power of digital gift cards to connect consumers to the brands they love - all 2,000 of them!


We’re quick and easy to deploy, with the fastest growing network, and have processed over £2 billion worth of gift cards to date. We work with over 2000 brands in 16 currencies across 36 markets, ending the battle between loyalty and acquisition to help businesses supercharge sustainable and profitable growth. 

Find out how Tillo can help your business.



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