Tax-efficient year-end gift: year-end bonuses, gifts and benefits for temporary workers
The end of the year is the perfect moment to thank your staff with a thoughtful gift. But when it comes to temporary workers, students, agency workers and flexi-jobbers, employers keep running into the same questions: what can you actually give, what does the taxman allow, and when does it stay tax-efficient?
This article gives you a clear overview of the rules on year-end gifts and year-end bonuses, with a specific focus on temporary workers.
What is a tax-free year-end gift?
A year-end gift is a benefit you grant an employee for Saint Nicholas, Christmas or New Year that is not treated as salary. It has to be a genuine token of appreciation, never a way to disguise part of someone's pay.
The three eligible occasions
| Occasion | Maximum amount |
|---|---|
| Saint Nicholas | ā¬40 per employee + ā¬40 per dependent child |
| Christmas | ā¬40 per employee + ā¬40 per dependent child |
| New Year | ā¬40 per employee + ā¬40 per dependent child |
Note: Across all three occasions combined, the total may not exceed ā¬40 per employee per year (optionally increased by ā¬40 per dependent child). You can spread that amount across several occasions, for example ā¬15 for Saint Nicholas and ā¬25 for Christmas.
Conditions for NSSO and tax exemption
To be exempt from both NSSO (National Social Security Office) contributions and tax, the gift has to meet all of the following conditions:
1. The right occasion
The gift is granted for Saint Nicholas, Christmas or New Year.
2. Respect the maximum amount
- ā¬40 per employee per year
- +ā¬40 per dependent child (fully or partly dependent on the employee)
3. Equal treatment
All employees must receive the same benefit. You can give full-time and part-time staff the same amount, or give part-time staff an amount in proportion to their working time.
What happens if you exceed the limit
Watch out: If you go over the maximum, the tax authorities and the NSSO treat the entire amount as salary, not just the part above the limit.
| Situation | NSSO | Tax | Deductible |
|---|---|---|---|
| Within ā¬40 (+ā¬40/child) | Exempt | Exempt | 100% deductible |
| Above ā¬40 (+ā¬40/child) | Full amount = salary | Full amount = salary | Not deductible |
Extra conditions for gift vouchers
When you hand out gift vouchers, extra conditions apply:
- The vouchers may only be redeemed at businesses that have signed a prior agreement with the voucher issuer
- They must have a limited validity period (for example: valid for a maximum of 1 year)
- They may not be paid out in cash
VAT deduction: different rules
For VAT deduction, a separate set of conditions applies:
| Condition | Rule |
|---|---|
| Purchase price | Below ā¬50 excluding VAT |
| Grant | To all staff members |
| Frequency | Only one gift per staff member per calendar year |
| Exclusion | No tobacco products or spirits |
Mind the difference: For NSSO and tax purposes the limit is ā¬40 including VAT; for VAT deduction it's ā¬50 excluding VAT.
Other occasions for gifts
Beyond Saint Nicholas, Christmas and New Year, there are other moments when you can give a gift tax-efficiently:
| Occasion | Maximum amount | NSSO-free | Tax-free |
|---|---|---|---|
| Honorary distinction | ā¬120 per year | Yes | Yes |
| Marriage/legal cohabitation | ā¬245 | Yes | Yes |
| Retirement | ā¬40 per year of service (min. ā¬120, max. ā¬1,000) | Yes* | Yes |
| Birthday | ā¬40 per year | No | Yes |
*For retirement gifts above ā¬1,000, NSSO contributions are due.
Important: Birthday gifts are subject to NSSO, but they are exempt from professional withholding tax and deductible as a business expense.
Year-end gift vs. year-end bonus: the difference
| Year-end gift | Year-end bonus | |
|---|---|---|
| Basis | Voluntary, a token of appreciation | Legal or sector-based right |
| NSSO | Exempt (within limits) | Always due |
| Tax | Exempt (within limits) | Always due |
| Deductible | 100% (within limits) | Yes, as a labour cost |
Year-end bonus for temporary workers
Agency workers
Agency workers do have a right to a year-end bonus, paid out by the Social Fund for Temporary Agency Workers.
Conditions
| Requirement | Five-day week | Six-day week |
|---|---|---|
| Minimum working days | 65 days | 78 days |
| OR minimum hours | 494 hours | 494 hours |
Reference period: 1 July to 30 June of the following year
Amount
The gross year-end bonus comes to 8.33% of the gross salary earned during the reference period.
After deductions:
- NSSO: 13.07%
- Professional withholding tax: 23.22%
- Net: around 63% of the gross amount
Assimilated days
These days count towards your entitlement to the bonus:
- Sick days with guaranteed salary
- Days of occupational accident
- Paid public holidays
- Up to 5 days of economic unemployment
Exception: immediate permanent hire
Were you hired on a permanent contract immediately after your agency assignment, with the same user company? Then you already qualify for the bonus from 60 days or 456 hours.
Student workers
Watch out: Days worked as a student through an agency are NOT counted towards the agency workers' year-end bonus.
Flexi-jobbers
Since 2025, a specific rule applies:
- Flexi-job days and hours do count towards the right to the year-end bonus
- They do not count towards the calculation of the amount
Temporary workers hired directly
For temporary workers hired directly (not through a temp agency), the right to a year-end bonus depends on:
- Sector-level collective labour agreements (CLAs): determine whether there is a right and under what conditions
- Company-level CLAs: may contain additional arrangements
- The individual employment contract: may contain specific arrangements
- Company practice: consistently granted bonuses can become an acquired right
Practical checklist for employers
Granting a year-end gift
- Choose the occasion: Saint Nicholas, Christmas or New Year
- Respect the maximum: ā¬40/employee + ā¬40/dependent child
- Grant it to all employees (including temporary ones)
- Document the grant correctly
- For gift vouchers: check that they meet the conditions
Year-end bonus for temporary workers
- Check the sector-level CLA for rights and conditions
- Agency workers: refer them to the Social Fund for Temporary Agency Workers
- Calculate pro rata for workers who were not employed for the full year
Overview table: tax treatment
| Type of benefit | NSSO | Tax | Employer tax deduction |
|---|---|---|---|
| Year-end gift (ā¤ā¬40) | Exempt | Exempt | 100% deductible |
| Year-end gift (>ā¬40) | Due on total | Due on total | Not deductible |
| Marriage gift (ā¤ā¬245) | Exempt | Exempt | 100% deductible |
| Retirement gift (ā¤ā¬1,000) | Exempt (ā¤ā¬1,000) | Exempt | 100% deductible |
| Birthday gift (ā¤ā¬40) | Due | Exempt | 100% deductible |
| Year-end bonus/13th month | Always due | Always due | Yes, as a labour cost |
Contact and more information
- Social Fund for Temporary Agency Workers: Tel. 02/203 60 95
- NSSO: rsz.be
- FPS Finance: financien.belgium.be
Last updated: January 2026
Sources: NSSO administrative instructions, Acerta, Securex, Liantis, Social Fund for Temporary Agency Workers, ACV, ABVV