Looking for a smart way to give your employees real financial relief without overstretching your budget – and save costs at the same time?
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If you're not sure yet whether employer gift cards are right for you, this article will help. And even if you've already read up on them, you're sure to find something new here.
The benefits of employer gift cards for your company
You may be wondering: can I give employees a gift card? Absolutely – in Germany you can give employees tax-free gift cards in recognition of their hard work. It's a great way to reward your team without creating an extra tax burden, and it gives you tax advantages as an employer too.
By combining tax-free gift cards with other perks, you can motivate your staff and keep costs down for your business at the same time.
Benefits in kind go beyond gift cards
Besides gift cards, there are other ways to give your employees tax-free benefits. These include meal allowances, internet and phone allowances, travel allowances and even company bicycles. These tax-advantaged benefits can boost employee satisfaction and loyalty without straining your budget.
Tax-free and tax-advantaged benefits
There's a difference between tax-free and tax-advantaged perks. Tax-advantaged benefits include allowances for internet, phone, meals and travel as well as the increasingly popular company bike. Tax-free benefits include company pension schemes, recreation allowances, childcare allowances and gifts worth up to €60, including the €50 employer gift card.
Motivating employees with employer gift cards
Imagine each of your employees receiving a €50 gift card – with no extra tax for either of you. Tax-free employer gift cards let you reward your team with a bonus that's free of tax and social security contributions, and that's a powerful motivator. In the competition for skilled workers, digital employee gift cards are a popular way to show appreciation and keep your team motivated.
Employer gift cards as a reward system
With persistent inflation and rising prices, perks that give employees real financial relief in everyday life are a clear advantage for you – both for recruiting the best talent and for keeping your employees in the long term.
Versatile uses of employer gift cards
Whether for shopping or meals, gift cards are a welcome perk that boosts employee happiness and loyalty. Small and medium-sized businesses in particular can benefit from this attractive benefit. The €50 gift card is available to all employees, whatever their type of employment, and helps you strengthen your team and your competitive position.
Tips for introducing gift cards
When introducing gift cards as an incentive, it's important to follow the legal rules. Under Section 107 (2) of the German Industrial Code (GewO), gift cards can be granted as part of remuneration, and under the German Income Tax Act, benefits in kind of up to €50 per month are tax-free. Certain record-keeping and documentation requirements must also be met for the tax exemption to apply.
Employer gift cards vs. cash benefits
It's important to distinguish between benefits in kind and cash benefits. Reimbursing expenses after the fact and earmarked cash payments don't count as benefits in kind and are taxable. To keep the tax advantage, gift cards should be clearly recognizable as benefits in kind.
Stay within the exemption limits
To keep the tax exemption, don't exceed the €50 limit for gift cards or the €60 limit for personal occasions. All benefits in kind must be added up each month to make sure you stay within these limits.
Digital gift cards as a practical solution
Digital gift cards are easy to manage and distribute – a practical option for tax-free employee gifts. Remaining balances stay on the card instead of being paid out in cash, which makes it easier to comply with the tax rules.
Employer gift cards in practice
Take the example of a fashion chain that gives its employees a €50 gift card every month as part of its benefits programme. The gift cards can be redeemed in any branch or online, so the team gets to enjoy their own company's products – which builds product knowledge as well as a sense of belonging and pride in the brand.
Another scenario is a chain of butcher's shops. There, the gift cards encourage employees to get to know the products first-hand. They can use them to buy meat and sausages in the branches and the online shop. Besides the obvious savings, employees deepen their product knowledge – which in turn improves the advice they give customers.
A tailored benefits-in-kind solution with gurado
Invest in your employees! Staying competitive today means investing where everything starts: in your own people. It pays off. Link the bonus directly to performance to build commitment to shared goals. Flexibility is what's needed most today. With rechargeable employee cards, gurado offers you a tailored benefits-in-kind solution.
gurado – the automatic benefits-in-kind solution for your company
To give your employees up to €600 a year free of tax and social security contributions, simply use a rechargeable benefits card from gurado, managed via a handy online portal. That keeps your admin and accounting work to a minimum and helps you offer this perk in a compliant, efficient way.
It's easy for you: your employees get one rechargeable card, so you don't have to hand out a new gift card every month. Because the gurado employee card is versatile, practical and can be topped up individually, it's ideal as a benefit in kind free of tax and social security contributions – and a great way to reward and motivate your team.
Let your employees benefit from the many advantages of tax-free employer gift cards while securing tax advantages for yourself. Sign up now and discover the practical, rechargeable gurado employee card!
Say goodbye to admin hassle and hello to a smarter way to reward your team. Sign up for gurado for free today.
