How much do employees spend on average on staff gifts?
How much money should you spend on gifts for employees? That is a question many HR professionals struggle with. On this page, you will find more information to determine the perfect budget.
Average budget per employee
A study has shown that employers average €170 per person per year set aside for staff gifts.
Because there are usually multiple occasions for which a gift is bought, it happens average budget per gift at €35.
This type of staff gift can take various forms:
- Physical gifts such as chocolates, drinks, or a gift box
- Gift cards or consumption vouchers
The amount varies per occasion.
The budget often depends on the occasionAnnual celebrations Events such as Sinterklaas, New Year's, and Easter often receive a lower budget than one-off milestones like a wedding or retirement.
Deductibility of employee gifts
As you know, are business gifts are tax deductibleThe VAT on staff gifts is deductible if the purchase price of each gift is less than €50 (excl. VAT). Additionally, it must be given to all employees.
Company gifts for your staff are, in principle, a form of wages. Technically, you are required to pay social security contributions on them. However, these gifts are exempt from social security contributions if you meet certain conditions.
Tips for determining a gift budget
- Take into account the tax limit for gifts you give to employees.
- Determine the goal: show appreciation, increase motivation, celebrate a milestone… The more important the goal, the higher the budget.
- Make a list of all the occasions when you want to give something. Such as inventory prevents your gift budget from growing uncontrollably.
- Check the impact on your costsSometimes €20 per person feels like a small amount, but for a team of 50 people, that quickly adds up to €1.000. That changes perception.
- Check the collective labor agreement rulesIn some sectors in Belgium, certain gifts are stipulated in a Collective Labour Agreement (CLA).
