Employee Anniversary Gift: From 1 Year to 40 Years of Service
Concrete gift suggestions per milestone, a suitable budget per year of service, WKR rules, tax benefits at 25 and 40 years, and how to automate anniversaries with an HRIS integration so you never miss one.
Anniversary gifts are more than tradition: employees with recognized milestones leave 22% less often. Budgets naturally scale with years of service — from €15 at 1 year to €250+ at 40 years. At 25 and 40 years, you can also pay out one month’s salary tax-free, outside the WKR. A self-chosen gift through a choice portal scores higher than a standard company gift.
Employee Anniversary Gift: The Complete Guide by Milestone [2026]
From 1 year to 40 years of service: which gift fits which milestone, why the budget grows with loyalty, what tax benefit you get at 25 and 40 years, and how to automate it so you never miss an anniversary.
1 year: €15–€25, a small welcome gesture. 5 years: €25–€50, a personal thank-you. 10 years: €50–€75, a gift with lasting value. 12.5 years: €75–€100, an important Dutch tradition. 25 years: €100–€150 plus one month’s salary tax-free. 40 years: €150–€250+ plus one month’s salary tax-free again. Automate via HRIS triggers so no anniversary is missed. A self-chosen gift through a choice portal is valued more highly than a standard company gift.
Why Anniversaries Matter
An anniversary gift is not just a nice extra. It is a moment to recognize loyalty and strengthen the bond with your employee. Research shows that employees with recognized milestones leave 22% less often. The message is clear: we see you, and we appreciate that you are here.
Yet many organizations get it wrong. Anniversaries are forgotten, the gift feels generic ("a company watch"), or the budget doesn’t match the milestone. This guide fixes that with concrete suggestions for every anniversary — from the first year to the fortieth — including the right budget, tax advantages, and automation tips. Also read our guide on rewarding employees for more ways to show appreciation.
By Milestone: Gift, Budget and Brands
1 Year of Service: The First Work Anniversary
The first work anniversary is skipped by many organizations — unfairly so. In the first year, turnover is highest: on average, 20–30% of new employees leave within 12 months. A small gesture on the first anniversary confirms the employee’s choice and shows that you are paying attention.
It doesn’t have to be big. A choice gift worth €15–€25 with a personal card is enough. The message matters more than the amount: "We’re glad you’re here; we look forward to year two."
Gift suggestions: Food for Skin mini set (€15–€20), a local food package (€20–€25), a Pop of Colour Amsterdam accessory (€15–€25), or let the employee choose via a choice gift starting from €15.
5 Years of Service: Gift for the First Major Milestone
After 5 years, an employee is truly part of the team. Celebrate it personally, but without going overboard. A thoughtful small gift with a handwritten card makes more impact than a standard gift card.
Gift suggestions: The Gift Label care set (€25–€35), BOSKA snack set (€30–€40), Food for Skin skincare duo (€25–€35), or let the employee choose through a choice gift from the full Cadeo collection.
10 Years of Service: Gift for the Decade
Ten years of loyalty deserves something with lasting value. Choose a gift that the employee will use for years and that conveys quality.
Gift suggestions: Rituals premium gift set (€50–€65), a Le Creuset mug or baking dish (€50–€75), Marie-Stella-Maris home fragrance set (€55–€70), or a choice gift that lets the employee select from 1,200+ products.
12.5 Years of Service: The Dutch Tradition
In the Netherlands, the 12.5-year anniversary is an important tradition. Many organizations give it more attention than 10 years. It deserves a gift that reflects that cultural value.
Gift suggestions: Le Creuset Dutch oven (compact size, €75–€100), Rituals exclusive collection (€80–€95), Dille & Kamille premium gift package (€75–€90), or a choice gift with a higher budget so the employee can choose from the premium segment.
25 Years of Service: The Silver Anniversary
A quarter century with the same organization is exceptional. In addition to a fitting gift, at 25 years of service you may pay out one month’s salary tax-free — this falls outside the WKR. Make the moment personal: a handwritten card from management, a speech, and a gift that suits the person.
Gift suggestions: Le Creuset Dutch oven (full-size, €120–€150), Victorinox premium chef’s knife (€100–€130), a choice gift with a premium collection including Bever outdoor, Pro Wallet and Brabantia, or combine a physical gift with a personal video message. See the guide to gifts for executives and management for inspiration at higher budgets.
40 Years of Service: Exceptional Loyalty
Forty years with one organization is rare and deserves a tribute that matches that exceptional dedication. At 40 years of service, you may also pay out one month’s salary tax-free (outside the WKR). Go beyond a gift alone: organize a moment with colleagues, management, and a personal story.
Gift suggestions: Le Creuset premium set (€180–€250), a choice gift with the full assortment of 1,200+ products and an increased budget, or a combination of a physical gift, handwritten card and a personal video. At this budget, you could also consider offering an experience alongside the product.
Why the Budget Grows with Years of Service
The budgets in this guide are not random. There is a logic behind them that you can explain to your management or finance team when creating a recognition policy.
Each year of service represents more accumulated knowledge, network and company value. Replacement costs rise accordingly: replacing an employee with 10+ years of experience costs an average of 150–200% of annual salary (recruitment, onboarding period, productivity loss). A €75 anniversary gift at 10 years is therefore one of the cheapest retention investments you can make.
The scaling works like this: at 1 year, you invest €15–€25 as confirmation of the employee’s choice. At 5 years, that grows to €25–€50 as recognition of commitment. At 10 years (€50–€75), you give something with lasting value that matches the relationship. The 12.5-year anniversary (€75–€100) carries extra weight in the Netherlands as a cultural milestone. And at 25 and 40 years, the tax benefits come on top of that.
The good thing: if you record these budgets in your recognition policy and automate them via an HRIS integration, you no longer have to think about it. Every employee receives the right recognition at the right time — consistently and predictably for your budget.
Tax Benefit at 25 and 40 Years of Service
An important detail many employers miss: at exactly 25 or 40 years of service, you may pay out one month’s salary tax-free. This one-time anniversary payment falls outside the Work-Related Costs Scheme and is therefore an extra advantage on top of the gift itself.
• At 25 years of service: one gross monthly salary tax-free, outside the WKR.
• At 40 years of service: one gross monthly salary tax-free again.
• Only applies at exactly 25 or 40 years (not at other milestones).
• You may replace the payout with a gift or trip of the same value.
• Important: always check with your payroll administrator to meet the conditions.
In practical terms, this means that for a 25-year anniversary, in addition to the physical gift (€100–€150 from the WKR), you can also pay out one gross monthly salary tax-free or use that value for a larger gift, trip or experience. This is exactly why the 25-year and 40-year anniversaries are traditionally celebrated on a grand scale — the tax office gives you a helping hand.
WKR at anniversaries: In addition to the anniversary payout, regular anniversary gifts fall under the Work-Related Costs Scheme. The free space is 2% on the first €400,000 of your total taxable payroll and 1.18% on the remainder. All gift budgets above fit within this scheme as long as the total of benefits stays within your free space. Read the full explanation in our WKR Tax Guide.
Overview: All Milestones in One Table
| Milestone | Budget | Example brand | Tax |
|---|---|---|---|
| 1 year | €15–€25 | Food for Skin, Pop of Colour, local food | WKR free space |
| 5 years | €25–€50 | The Gift Label, BOSKA, Food for Skin | WKR free space |
| 10 years | €50–€75 | Rituals, Le Creuset, Marie-Stella-Maris | WKR free space |
| 12.5 years | €75–€100 | Le Creuset, Rituals exclusive, Dille & Kamille | WKR free space |
| 25 years | €100–€150 | Le Creuset, Victorinox, choice gift | WKR + 1 month’s salary tax-free |
| 40 years | €150–€250+ | Le Creuset premium, choice gift | WKR + 1 month’s salary tax-free |
Gift for 12.5 Years of Service: Why This Anniversary Counts Extra
The 12.5-year anniversary is uniquely Dutch. No other country celebrates this half-anniversary as broadly as we do here. For many employees, it is even a bigger moment than 10 years — it marks the transition from “I’ve worked here for a while” to “this is my place.”
Yet employers often underestimate or forget the 12.5-year anniversary. A missed opportunity, because the impact of recognition is greatest exactly at this milestone. Employees around 12.5 years are in a critical phase: loyal enough to stay, but also experienced enough to work elsewhere. A good anniversary gift confirms their choice.
Cadeo tip: At 12.5 years, a premium choice gift works best. Popular choices: Le Creuset cookware, Rituals exclusive sets, and experience gifts such as a cooking workshop or wellness package.
Budget: €75–€100 is common and fits within the WKR free space. This is deliberately higher than at 10 years — it reflects the cultural value of this milestone.
Best approach: Combine a choice gift with a personal moment. Think of a short word from management, a card signed by the team, and a choice portal where the employee selects something themselves. The redemption rate for 12.5-year anniversaries via Cadeo is 97% — higher than at other moments, because employees experience this gift as special.
Unlike 25 and 40 years, there is no tax-free anniversary payout of a month’s salary at 12.5 years. The gift falls entirely under the regular WKR free space. Read more about the exact rules in the WKR guide for gift cards.
More and more organizations are automating the 12.5-year anniversary via a recognition policy. Set it up once, and the platform automatically sends an invitation on the right date — no Excel lists, no missed milestones.
Gift for a Man or Woman at 25 Years of Service — How Does That Work?
The most searched anniversary question in the Netherlands is "gift 25 years of service woman" or "gift 25 years of service man." Understandable — you want to give something that fits. But in practice, a gender-specific gift rarely works well. Stereotypes (flowers for women, tools for men) feel dated and miss the personal touch that should matter at a 25-year anniversary.
Three strategies that work:
1. Know the person, not the gender. Does your colleague often talk about cooking, gardening, running or traveling? Choose from that. A personal hobby always resonates more than a gender assumption.
2. Give a choice gift. The employee chooses from 1,200+ products. Risk of mismatch: zero. Redemption rate: ~95%. This is why many organizations automatically choose a choice gift for 25-year anniversaries — it feels more modern and personal than a preselected product.
3. Combine an experience with a symbolic gift. A weekend away or restaurant voucher for two (partner may join) plus a smaller personal gift such as a handwritten book with contributions from colleagues. That works for everyone, regardless of gender.
The same applies to 40 years of service: drop gender, focus on the person and the relationship. When in doubt: choice gift + personal message.
Self-Chosen vs. Standard: Why Choice Wins
The traditional anniversary gift is often a watch, vase or pen set with a company logo. Well meant, but rarely truly appreciated. The employee may not say anything, but the gift ends up in a drawer.
A choice gift through a platform like Cadeo turns that around. The employee receives a handwritten card with a QR code, opens the choice portal in your company branding, and selects a gift from the collection of 1,200+ products. The result: ~95% redemption (versus ~80% for traditional gifts) and an employee who feels genuinely appreciated. Read more about how the choice platform works.
How to Automate Anniversary Gifts
For organizations with dozens or hundreds of employees, manually tracking anniversaries is not sustainable. The solution: HRIS automation.
Collections per milestone
Build a suitable collection and budget for each anniversary — from €15 at 1 year to €250+ at 40 years.
Send automatically
The system sends a gift with card on the correct date. Zero manual work.
Read the full guide in our article on automating birthday gifts — the principle is identical for anniversaries.
The difference between a forgotten anniversary and a celebrated anniversary is the difference between an employee who leaves and an employee who stays.
Hendrik Wolleswinkel – Founder & CEO at CadeoFrequently Asked Questions
It is not mandatory, but more and more organizations do it. The first year is the period with the highest turnover — a small gesture of €15–€25 confirms the employee’s choice and strengthens engagement. Especially in sectors with fierce competition for talent (tech, healthcare), this makes a difference. It costs little, but the signal is powerful.
Budget €100–€150 from the WKR space, plus one gross monthly salary that you may pay tax-free. Choice gift scores highest (~95% redemption), and many companies combine a physical gift with an experience (trip or restaurant) for the employee and partner. See the options on the Cadeo choice platform.
Yes, at 25 and 40 years of service you may pay out one gross monthly salary tax-free as a one-time anniversary payment — this falls outside the WKR. At other milestones (1, 5, 10, 12.5 years), gifts fall within the WKR free space of 2%. Always check with your payroll administrator for the exact conditions.
At 5 years, typically €25–€50 (The Gift Label, BOSKA, Food for Skin); at 10 years, €50–€75 (Rituals, Le Creuset, Marie-Stella-Maris). Choice gift, a wellness experience or a quality product are the most popular categories. A handwritten card makes the difference between "nice" and "memorable."
Focus on the person rather than the gender. A choice gift that lets the employee choose from 1,200+ products, or an experience for two (restaurant, weekend away) works for everyone. Stereotypes (flowers for women, tools for men) feel dated at a milestone like 25 years of service.
Guideline: 1 year €15–€25, 5 years €25–€50, 10 years €50–€75, 12.5 years €75–€100, 25 years €100–€150 (+ month’s salary tax-free), 40 years €150–€250+ (+ month’s salary tax-free). The budget naturally grows with years of service — each milestone represents more accumulated value. More important than the amount is the personal attention.
Regular anniversary gifts fall under the WKR with a free space of 2% on the first €400,000 of payroll and 1.18% above that. The one-time anniversary payout at 25 or 40 years of service falls outside this and is tax-free up to one month’s salary. Read more in the WKR Tax Guide.
With an HRIS integration, you can automate everything. You connect your personnel system (Personio, AFAS, HiBob) once, and the platform automatically sends a gift on the right date. No manual tracking, no forgetting. Read more in our article on automating gifts.
In most cases, yes. A choice gift lets the employee pick what they actually want, leading to ~95% redemption versus ~80% for fixed gifts. It feels more personal than a standard company gift and is actually used. Combine it with a handwritten card for the personal touch. Compare the options in our article choice gift vs. gift card.
Yes, but be consistent and transparent. The most common approach is to link the budget to years of service (as in the table above), regardless of job level. This avoids a sense of unequal treatment and is easier to automate.
Use a combination of three elements: a handwritten card (Cadeo offers this at scale via templates), a choice portal in your company branding so the gift feels like your organization, and a personal message from the manager. This can be automated through your HRIS without feeling impersonal.
Yes. With Cadeo, you send a personal link by email — the recipient chooses a gift and enters the delivery address themselves. This also works for international teams. Read more in Sending a Gift Without an Address.
