What is the Small Benefit Exemption Scheme in Ireland?

The Small Benefit Exemption Scheme (SBE) allows Irish employers to reward employees with non-cash benefits, such as digital gift cards, up to a total value of €1,500 per year, completely tax-free for both the employer and employee

What is the new tax-free limit under the updated scheme?

From 1 January 2025, employers can give up to five rewards per year with a combined total value of €1,500, up from €1,000

Who can receive tax-free employee benefits under the scheme?

Any employee on payroll, full-time, part-time, or directors receiving Schedule E income, can receive tax-free benefits under the scheme.

Are CleverCards eligible under the Small Benefit Exemption Scheme?

Yes. CleverCards digital Visa cards qualify as non-cash benefits and comply fully with the Small Benefit Exemption Scheme.

How do CleverCards help employers save on taxes?

CleverCards allow employers to issue compliant, non-cash rewards, helping them avoid PAYE, USC, and employer PRSI, saving on overall payroll costs

How much can businesses save using the 2025 tax-free allowance?

Using the 2025 allowance, a €1,500 CleverCards reward saves the employer up to 11% PRSI, and employees receive the full amount tax-free.

How does the Small Benefit Exemption Scheme benefit both employers and employees?

Employers save on taxes, and employees enjoy the full reward value without deductions, creating a more motivating, cost-efficient reward system.

What makes CleverCards secure and easy to manage?

CleverCards offer real-time tracking, spend limits, and instant issuance through a secure dashboard

Are non-monetary rewards like extra time off also covered under the scheme?

No. Only non-cash financial benefits (e.g., vouchers or prepaid cards) qualify. Extra leave or time off is not covered under the exemption

What is the small gift exemption in PAYE?

The Small Gift Exemption under PAYE refers to Revenue’s rule allowing small, non-cash employee gifts to be given tax-free, within the annual limit

Can you backdate a small gift exemption?

The small gift tax exemption in Ireland cannot be backdated. It applies strictly to the gifts received within the current calendar year

The Small Benefit Exemption Scheme is Getting Even Better!

~5min reading time Published 23 October 2024 Updated 29 October 2026

Let's talk about employee benefits! They're a big deal for any compensation package, but they can also mean a ton of taxes for everyone. That's where the Small Benefit Exemption Scheme comes in to save the day! The scheme lets Irish employers give tax-free benefits, rewards and gifts to their employees, and guess what? It's getting a major upgrade in 2025.

In this post, we'll break down how the scheme works, the exciting changes coming soon, and how you can use it to make your employees feel appreciated (with a bit of help from CleverCards!).

What's the Small Benefit Exemption Scheme All About?

The Small Benefit Exemption Scheme is a government initiative designed to help businesses reward their employees tax-efficiently. It allows Irish employers to give out non-cash benefits (like CleverCards digital Visa) without any tax deductions for the employee or PRSI implications for the employer.

This means you can show your team some love for their hard work without costing them or your business extra. In fact, it will save you and your employees tax – find out just how much here on this 2024 tax-savings calculator. It's a win-win!

Exciting Updates for 2025!

Starting January 1st, 2025, the Small Benefit Exemption Scheme is getting a serious boost.

Here's what's changing:

Increased Allowance: The tax-free allowance is increasing from €1,000 to €1,500 per employee annually. That means you can give even better gifts without worrying about taxes.
More Flexibility: You can give your employees benefits in up to five separate instalments instead of just two. This lets you spread out the rewards throughout the year and celebrate those wins and special occasions as they happen.

With these updates, the Small Benefit Exemption Scheme will offer even more flexibility and value for both employers and employees, and businesses can reward and motivate their employees more often throughout the year.

How Much Can You Actually Save in 2025?

The changes in 2025 will mean even more money saved for both you and your employees.

Employees continue to receive the total value of the benefit without any tax deductions. This means they enjoy the entire reward, up to €1,500 per year, without worrying about losing a portion of it to taxes.

Here's an example of the savings the 2025 updates will bring businesses:

A €1,500 bonus paid through payroll to an employee in the higher tax bracket could cost your business over €3,400. By using the Small Benefit Exemption Scheme in 2025, you could save over €1,900 per employee when giving them the full €1,500 benefit on a CleverCard! That's a lot of savings, especially if you're rewarding an entire team. More rewards, less taxes – everyone wins!

What Kind of Employee Benefits are Eligible?

The Small Benefit Exemption Scheme covers a bunch of non-cash benefits, making it perfect for employee reward and recognition initiatives.

Eligible benefits include:

Gift Cards: Prepaid cards like CleverCards are a popular choice because they give employees the flexibility to choose how and where to spend their rewards.
Vouchers: These can be for specific stores or experiences, so you can tailor them to what your employees like.
Non-Monetary Rewards: Extra time off or company merch will also be tax-free under the scheme.

Just remember, the benefit can't be cash and it has to stay under the €1,500 limit (from 2025).

CleverCards: The Easiest Way to Give Tax-Free Gifts

CleverCards are digital Visa that make giving tax-free rewards to your employees super easy.

Here's why they're perfect for the Small Benefit Exemption Scheme:

Instant Delivery: Send CleverCards via email – no waiting to post physical cards.
Easy to Use: Employees can add their CleverCards to Apple or Google Pay and use their smartphones to pay.
Total Flexibility: They can be used online and in-store anywhere Visa is accepted, so your employees can choose how they want to spend their rewards.
Secure and Trackable: You can keep an eye on spending and balance through the CleverCards app.

In short, CleverCards are a hassle-free way to give your team tax-free rewards they'll love!

CleverCards + Small Benefit Exemption Scheme = The Perfect Combo

The 2025 Small Benefit Exemption Scheme updates are a golden opportunity to step up your employee reward game and create a workplace where everyone feels valued. By combining the scheme with the flexibility and convenience of CleverCards, you can make rewarding your team easy and fun, all while saving money on taxes!

Ready to give it a try?

Get in touch with us today to learn how CleverCards can help you take full advantage of the Small Benefit Exemption Scheme and build an engaged and motivated team, or order instantly online here.

Frequently Asked Questions (FAQs)

: The Small Benefit Exemption Scheme (SBE) allows Irish employers to reward employees with non-cash benefits, such as digital gift cards, up to a total value of €1,500 per year, completely tax-free for both the employer and employee
: From 1 January 2025, employers can give up to five rewards per year with a combined total value of €1,500, up from €1,000
: Any employee on payroll, full-time, part-time, or directors receiving Schedule E income, can receive tax-free benefits under the scheme.
: Yes. CleverCards digital Visa cards qualify as non-cash benefits and comply fully with the Small Benefit Exemption Scheme.
: CleverCards allow employers to issue compliant, non-cash rewards, helping them avoid PAYE, USC, and employer PRSI, saving on overall payroll costs
: Using the 2025 allowance, a €1,500 CleverCards reward saves the employer up to 11% PRSI, and employees receive the full amount tax-free.
: Employers save on taxes, and employees enjoy the full reward value without deductions, creating a more motivating, cost-efficient reward system.
: CleverCards offer real-time tracking, spend limits, and instant issuance through a secure dashboard
: No. Only non-cash financial benefits (e.g., vouchers or prepaid cards) qualify. Extra leave or time off is not covered under the exemption
: The Small Gift Exemption under PAYE refers to Revenue’s rule allowing small, non-cash employee gifts to be given tax-free, within the annual limit
: The small gift tax exemption in Ireland cannot be backdated. It applies strictly to the gifts received within the current calendar year

Small Benefit Exemption 2026 employer's guide binder with tax exemption checklist