The decision in Budget 2016 to increase the maximum value of non-cash bonuses from €250 to €500 has been welcomed by Cork East Fine Gael TD, David Stanton. This increase is provided for in the Finance Bill which completed second stage in Dail Eireann this week.
“Now employers wishing to give non-cash Christmas bonuses to staff can give double what they could give last year. The increase means that employees can receive vouchers worth up to €500, tax free. Anything above this amount will be subject to PAYE and PRSI.
“This is a great incentive for employers to reward staff with a larger bonus for Christmas and it will provide a significant boost to the local economy, where people will spend the vouchers.”
“This increase in the amount allowable in one-off non-cash bonuses was initially due to come into force in 2016. However, Minister Noonan’s decision to fast track this legislation means that changes will come into effect this year.