Retirement Gift for a Colleague: A Farewell That Does Justice to the Years [2026]
After 10, 20 or 40 years, a colleague who is retiring deserves more than a bouquet of flowers and an envelope. But what should you give? And what is allowed tax-wise?
A retirement gift from the employer falls under the WKR free space (2% over the first €400,000 of payroll in 2026). A choice gift is ideal for retirement: the recipient chooses something that fits the new chapter — from a workshop to a design piece — while the budget matches the years of service.
A retirement gift is one of the few gift occasions where the budget really matters. After decades of loyalty, a standard gift card feels too impersonal. A choice gift solves this: the employer chooses the budget and a personal message, while the recipient chooses from a premium collection. It feels like a grand gesture without having to guess the right taste.
Why retirement is a special gifting moment
Most gift moments at work are collective: everyone gets the same thing at Christmas, everyone gets something on their birthday. Retirement is fundamentally different. It is individual, emotional, and it marks the end of a career — sometimes with the same employer.
That raises expectations. A bouquet of flowers and an envelope with cash is the standard, but it feels flat after 25 years of working together. At the same time, it is difficult to choose something personal for someone you may see every day but whose private preferences you do not know.
A choice gift offers the way out: the budget and the personal message come from the employer, the choice comes from the recipient. It feels personal without having to guess.
How much do you give for retirement? Budget guidelines
There are no fixed rules for the budget of a retirement gift, but there are unwritten norms. The budget depends on the number of years of service and the company culture.
| Years of service | Common budget | Explanation |
|---|---|---|
| 5-10 years | €50-75 | A nice farewell gesture, not over the top |
| 10-20 years | €75-125 | Recognizes the longer commitment |
| 20-30 years | €125-200 | Significant loyalty deserves a bigger gesture |
| 30-40+ years | €200+ | A career spent with the same employer — this calls for a premium gift |
In larger organizations, the retirement gift is often combined with an informal farewell moment. The gift itself does not have to be handed over on the spot — with a choice gift, the retiree can choose at home at their leisure.
WKR and retirement gifts: the tax rules
A retirement gift from the employer falls under the WKR free space. Note: there is no specific exemption for retirement gifts, unlike the service anniversary payment for 25 or 40 years.
Important distinction: service anniversary bonus vs. retirement gift
A service anniversary bonus for 25 or 40 years of service is exempt from payroll tax (provided the amount does not exceed the last month’s salary). A retirement gift is not — this simply falls under the WKR free space. In many organizations, these moments coincide: someone with 40 years of service retires. In that case, it can be smart to book it as a service anniversary bonus instead of as a retirement gift.
In practical terms: in 2026, the WKR free space is 2% on the first €400,000 of payroll and 1.18% above that. A retirement gift of €150 per person fits nicely, especially if you do not have dozens of retirees every year.
5 ideas for a retirement gift that lasts
1. Choice gift with premium collection
At Cadeo, you can create a premium collection for retirement with a higher budget than your standard gifts. The recipient chooses from products that fit the new chapter: from a cooking workshop to a designer lamp, from a local dining experience to a premium home coffee set. The choice portal is personalized with a farewell message from the team or management.
2. Experience gift
After years of working, free time is the greatest gift. An experience — a workshop, a weekend away, a restaurant visit — fits that perfectly. With a choice gift, the recipient can decide which experience suits them. One person may want to learn to cook, another may want to do a wine tasting. Let them choose.
3. Collective gift from the team
Sometimes a retirement gift comes not only from the employer, but is collected by the team. In that case, a shared choice gift with a higher budget can be the solution. Combine it with a personal farewell book or video — the gift is the tangible part, the book is the emotional part.
4. Sustainable gift with meaning
Many retirees do not want more stuff — they want less, not more. A sustainable gift from an impact brand fits that mindset. Something made with care, locally produced, and with a story behind it. Cadeo's collection consists entirely of this type of product.
5. Personalized experience in company branding
Cadeo's choice portal is customizable: upload a photo of the retiree, write a personal message on behalf of the team or management, and let the organization’s branding come through. The recipient does not open a random webshop, but a personal farewell moment. That makes all the difference.
Automating retirement gifts
In larger organizations, several employees retire every year. With Cadeo's HRIS integrations, you can set retirement as a trigger: when an employee reaches retirement age, a choice gift is automatically prepared with the right budget and a personal invitation. HR only needs to adjust the message for each person.
Schedule retirement as a fixed moment in your gift calendar and combine it with anniversaries and other milestone moments.
A worthy farewell, without the hassle
A retirement gift should be special. Put together a premium collection, write a personal message, and let the retiree choose what fits the new chapter.
View the choice platform →★★★★★ 4.6/5 · 500+ sustainable products · Pay only when redeemed
Frequently asked questions
The common budget depends on the number of years of service: €50-75 for 5-10 years, €75-125 for 10-20 years, €125-200 for 20-30 years, and €200+ for 30-40+ years. These are guidelines — company culture and the available budget ultimately determine the amount.
A retirement gift falls under the WKR free space (2% over the first €400,000 of payroll in 2026), not under a specific exemption. Exception: if the employee also reaches a 25- or 40-year service anniversary, it can be booked as a service anniversary bonus — that is exempt. Read more in the WKR guide.
The most original retirement gift is one the retiree chooses themselves — but from a special collection. With a choice gift through Cadeo, the recipient chooses from premium, sustainable products: from a cooking workshop to a design object. Combined with a personal message in the choice portal, it feels like a truly meaningful gesture, not a standard voucher.
A service anniversary bonus for 25 or 40 years of service is exempt from payroll tax, up to the monthly salary. A retirement gift is not — it falls under the WKR free space. If someone with 40 years of service retires, it can be smart to book the gift as a service anniversary bonus instead of as a retirement gift.
Yes. With Cadeo's HRIS integrations, you set retirement as a trigger: when an employee reaches retirement age, a choice gift is automatically prepared. HR only adjusts the personal message. Ideal for organizations where several employees retire every year.
At Cadeo, you can personalize the choice portal with a farewell message from the team or management. Combine the gift with a physical element — a farewell book, a card with signatures — and you have a gift that is both tangible and personal. The digital part (choosing) happens at home; the emotional part (the farewell) happens at the office.
