Employee Gift Voucher and the WKR: Everything You Need to Know
How much can you give tax-free in gift vouchers? How does the WKR work in 2026? And what is the difference between a gift voucher and a choice gift? The complete tax guide with calculation examples.
Gift vouchers and choice gifts for employees are tax-free through the WKR, provided they are not redeemable for cash. The free allowance in 2026 is 2% on the first €400,000 of payroll and 1.18% above that. A gift of €50 per employee for 200 employees (€10,000 total) fits well within the free allowance of most SMEs.
Employee Gift Voucher and the WKR: Everything You Need to Know (2026)
You want to give your employees a gift voucher or choice gift. But how much can it cost without you or your employee paying tax? How exactly does the work-related costs scheme (WKR) work? And does it matter whether you give a VVV voucher or a choice gift through a platform? In this article, we explain it clearly using the 2026 figures and concrete calculation examples.
Gift vouchers and choice gifts for employees are tax-free when you designate them as a final levy item within the WKR free allowance. In 2026, the free allowance is 2% of the taxable payroll up to €400,000 and 1.18% above that. Condition: the gift must not be redeemable for cash. If you exceed the free allowance, you as the employer pay 80% final levy on the excess amount.
What is the work-related costs scheme (WKR)?
The work-related costs scheme is the tax arrangement that allows employers to provide reimbursements and benefits to employees tax-free. Within the WKR's "free allowance," you as an employer can give or reimburse your staff things tax-free, without the employee paying wage tax on them.
WKR free allowance 2026: 2% on the first €400,000 of the taxable payroll and 1.18% on the amount above that.
Everything you give or reimburse to your employees as an employer and designate as a final levy item counts against this free allowance. Think of Christmas gifts, birthday gifts, anniversary gifts, bicycle allowances and other staff benefits. Read the full explanation of the WKR in our WKR guide for business gifts.
Calculation example: does your gift budget fit within the free allowance?
Let's make it concrete with a calculation example for an SME. Also check our gift calendar 2026 to spread your WKR budget smartly across the year.
Calculation example: 200 employees, €50 per gift
In this example, the gift budget of €10,000 is only 9.1% of the total free allowance. Even with all other reimbursements and benefits (bike, Christmas hamper, company outing), it still fits comfortably for most SMEs.
Calculation example: small business, 25 employees
The 3 conditions for tax-free gift vouchers
1. Not redeemable for cash
This is the most important condition. A gift voucher, gift card or choice gift must not be redeemable for cash. If it is, it is considered taxable salary and the employee pays wage tax. Choice gifts through platforms such as Cadeo meet this requirement by default.
2. Designate as a final levy item
You must explicitly designate the gift as a final levy item within the WKR free allowance. You do this in your payroll administration. The employee then pays no wage tax — the cost comes out of your free allowance.
3. Customary test
Per employee, per designation, the amount may not be unreasonably high. A year-end gift of €35–€50 is not an issue. For very high amounts, the Tax Administration may ask questions. Want to know more? Read our WKR guide.
Note: If you exceed the free allowance, you as the employer pay 80% final levy on the amount above the free allowance. So if you go €1,000 over, you pay an extra €800 in tax. Keep track of your total WKR spending carefully.
WKR: gift voucher vs choice gift — does it matter?
From a tax perspective, it makes no difference whether you give a VVV Gift Card, a National Gift Card, or a choice gift through a platform. As long as it is not redeemable for cash and you designate it within the free allowance, it is tax-free for the employee.
The difference is what you get in return. A gift voucher costs the same as a choice gift of the same value, but a choice gift through a platform like Cadeo also offers personalisation (branded portal, personal message), a choice of 1,200+ products, vouchers, experiences and donations, impact reporting (so you know what happens with your investment), and the option of a handwritten card with QR code. Curious how such a choice platform works exactly?
| Criterion | Gift voucher (VVV etc.) | Choice gift (Cadeo etc.) |
|---|---|---|
| WKR-compliant | Yes | Yes |
| Not redeemable for cash | Yes (for most cards) | Yes (standard) |
| Personalisation | No | Yes (branding, message, video) |
| Impact reporting | No | Yes (standard with Cadeo) |
| Choice range | Stores in network | 1,200+ products, vouchers, experiences, donations |
| Redemption | ~80% (industry average) | ~95% (with Cadeo) |
| Costs | Value + €1–€3 each | All-inclusive from €10/employee |
Read the full comparison in our article Gift Voucher, Gift Card or Choice Gift: What's the Difference? Or see directly how Cadeo compares to a traditional gift voucher in Cadeo vs Gift Voucher.
Common mistakes with gift vouchers and the WKR
Mistake 1: Giving vouchers redeemable for cash
Some gift vouchers can be redeemed for cash with the issuer. That makes them taxable salary, not a tax-free benefit. Always check that the voucher or gift cannot be converted into money. With a choice gift via Cadeo, this is excluded by default.
Mistake 2: Not designating it in payroll administration
Giving the gift tax-free only works if you explicitly designate it as a final levy item in the WKR. If you forget, the gift is treated as the employee's individual salary and they pay tax on it.
Mistake 3: Not keeping track of the free allowance
The free allowance is an annual budget. If you allocate significant amounts in January for other purposes (company party, bicycle scheme), there may be too little room left in December for the Christmas gift. Keep track of your WKR spending throughout the year. Our gift calendar 2026 can help with that.
Mistake 4: Assuming it will automatically be fine
With a choice gift through a reputable platform like Cadeo, WKR compliance is built in — the gift is by definition not redeemable for cash. With loose gift vouchers or cash-like alternatives, you need to check this yourself.
Concrete situations: is this allowed through the WKR?
| Situation | WKR-compliant? | Explanation |
|---|---|---|
| VVV Gift Card €50 | Yes | Not redeemable for cash, designate within the free allowance |
| Cadeo choice gift €50 | Yes | Standard not redeemable for cash, with impact reporting |
| bol.com gift card €50 | Yes | Not redeemable for cash at bol.com |
| Cash €50 | No | Cash is always taxable salary |
| Bank transfer €50 | No | Money is not a benefit but salary |
| Physical Christmas hamper €50 | Yes | Benefit in kind, designate within the free allowance |
Working with remote or international teams? Then a digital choice gift is often the most practical WKR solution — you can send it without address details and the employee chooses for themselves.
Why more and more companies are choosing a choice gift through the WKR
The tax rules for gift vouchers and choice gifts are identical. The difference is what you get for the same budget. With a €50 choice gift through Cadeo, your employee gets a branded portal in your corporate style, a personal message (optionally as a video), a choice of 1,200+ products, vouchers, experiences and donations, and you get impact reporting that tells you whether the investment is resonating.
Cadeo is TIM-certified, which guarantees that products in the assortment are sourced fairly and sustainably. And with the option of a handwritten card with QR code, you combine the digital with a physical touchpoint. Through integrations with your HR system, you can automate the entire process.
With a budget of €35–€50 per employee — the most popular segment for year-end gifts — you are comfortably within the free allowance and give your team a gift that is personal, measurable and tax-free. Discover more about rewarding employees at any time of the year.
"The WKR is not a restriction but a framework. Within that framework, you can choose a generic voucher or a personal choice gift that strengthens your employer brand. It costs the same — the effect is completely different."
— Cadeo TeamFrequently asked questions about gift vouchers, employees and the WKR
There is no fixed maximum amount per gift. The gift must fit within the WKR free allowance (2% on the first €400,000 of payroll, 1.18% above that) and meet the customary test. For most companies, a gift of €35–€50 per employee is comfortably tax-free.
Yes, provided the gift voucher is not redeemable for cash and the employer designates the gift as a final levy item within the WKR free allowance. The employee then pays no wage tax. If the voucher is redeemable for cash, it is taxable salary.
If you exceed the free allowance, you as the employer pay 80% final levy on the excess. So if you go €1,000 over your free allowance, you pay an extra €800 in tax. The employee does not notice this — it is an employer levy.
Yes. Choice gifts through Cadeo are by definition not redeemable for cash and therefore meet the most important WKR condition. You designate the gift as a final levy item in your payroll administration and it counts against your free allowance. Cadeo supplies the tax documentation as standard.
Yes, you can give a gift voucher or choice gift through the WKR for any occasion: Christmas, birthday, anniversary, onboarding, retirement. Each designation counts against your total free allowance. So keep track of the total carefully via the gift calendar.
There is no tax difference. Both are designated as a final levy item within the WKR free allowance. The difference lies in the experience and measurability: a choice gift through a platform offers personalisation, brand experience and impact reporting — a gift voucher does not.
The WKR free allowance in 2026 is: 2% on the first €400,000 of taxable payroll and 1.18% on the amount above that. A company with a payroll of €1,000,000 therefore has €15,080 in free allowance (€8,000 + €7,080). Read more in our WKR guide.
