Christmas gifts and company events

How much Christmas gifts, the Christmas party and anniversary gifts may cost free of tax and social insurance, and why cash as a gift is not free, as of 2026.

Definition

Employers may give each employee gifts in kind and company events up to fixed amounts a year without wage tax (§ 3 (1) Z 14 EStG), social insurance (§ 49 (3) Z 17 ASVG) or payroll levies. In 2026 that is €186.00 for gifts in kind such as the Christmas present, €365.00 for company events such as the Christmas party or a company outing and €186.00 for an anniversary gift. The amounts apply per person and calendar year, side by side. Cash gifts are not covered: they are salary.

Allowances by year

Free per person and year
2024
2025
2026
2027
Gifts in kind
€186.00
€186.00
€186.00
€186.00
Company events
€365.00
€365.00
€365.00
€365.00
Anniversary gifts
€186.00
€186.00
€186.00
€186.00

The three amounts apply side by side. Until 2006 the statute only required "reasonable" costs and the wage tax guidelines (Rz 78) set the same amounts; since 2007 they are in the statute, and the allowance for anniversary gifts exists since 2016.

What counts

  • Gifts in kind: Christmas present, hamper, vouchers that cannot be exchanged for cash. No Christmas party is required.
  • Company events: Christmas party, company outing, summer party, cultural event. The cost per participant per year counts, for all events together.
  • Anniversary gifts: A gift in kind for a service anniversary (10, 20, 25, 30, 35, 40, 45, 50 years) or a company anniversary, free since 2016. Two anniversaries in the same year count once.
  • Not covered: Cash gifts, which are salary. Gifts rewarding personal performance. Anything above the allowance is liable to tax and contributions.

Example: gross €4,230/month (Vienna, 2026)

The gross is the median full-time salary 2026 (forecast). The employer gives €186.00 for Christmas: once as a gift in kind, once as money with the December salary.

Form
Arrives net
Costs the employer
Gift in kind
€186.00
€186.00
Cash
€95.84
€240.07

Frequently asked questions

Up to €186.00 per employee a year, as a gift in kind or a voucher that cannot be exchanged for cash. A Christmas party is not required. Anything above is liable to tax and contributions.
No. Cash gifts are salary and are taxed as a special payment, with social insurance. In the example above only €95.84 of €186.00 in cash arrives net, and the employer pays €240.07; as a gift in kind the full amount arrives and costs only that.
Up to €365.00 per participant a year, for all company events together: Christmas party, outing and summer party. Food, drinks and travel count towards it. A gift at the party counts towards the €186.00 for gifts in kind, not the €365.00.
The statute names only gifts in kind at company events and for anniversaries; Christmas gifts are covered by the wage tax guidelines. A personal birthday gift is neither, so in principle it is liable to tax and contributions, and a cash gift always is.
As a gift in kind up to €186.00 a year, on top of the €186.00 for other gifts in kind, for a service anniversary from 10 years or a company anniversary. Anniversary money in cash is liable to tax and contributions, but taxed favourably as a special payment within the annual sixth.

See also

Try it in the gross-to-net calculator Try it in the employer-cost calculator

Sources: § 3 Abs 1 Z 14 EStG (RIS) idF BGBl. I Nr. 24/2007 (ab 24.5.2007) und BGBl. I Nr. 118/2015 (Jubiläum ab 1.1.2016), § 49 Abs 3 Z 17 ASVG, BMF „Lohnsteuerrichtlinien 2002“ Rz 78, § 41 Abs 4 lit c FLAG, § 5 Abs 2 KommStG.