Employee gifts: what is subject to social security and what is not

Birthdays, Christmas, weddings… A gift is a thoughtful way to show appreciation. But be aware: some gifts must be reported on the payslip and are subject to social security contributions.

Tax-free gifts

In-kind gifts given on special occasions (birthday, Christmas, Easter, wedding, birth, service anniversary, etc.) are tax-free and exempt from social security contributions up to CHF 500.– per occasion. Example: a voucher worth CHF 450.– does not need to appear on the payslip.

Exceptions

The following benefits are also not subject to declaration:

• Free SBB half-fare travelcard
• Discounts on REKA checks up to CHF 600.– per year (any excess is taxable and subject to contributions)
• Private use of work tools (computer, mobile phone) within normal limits

When must it be declared?

If the value of a gift exceeds CHF 500.–, the entire amount is taxable and subject to social security contributions. Example: a voucher worth CHF 700.– must be declared in full, not just the CHF 200.– above the threshold. Cash gifts are always taxable, regardless of the amount. An SBB general travelcard (GA) may also be taxable if it is not essential for professional use.

Conclusion

Small gestures strengthen employee motivation and loyalty. By following these simple rules, you can give meaningful gifts while remaining compliant.