Service and performance schemes and awards

Staff suggestion schemes

You may decide to run a staff suggestion scheme. Any awards you give your employees under the scheme are taxable benefits in kind. Your employee must pay Pay As You Earn (PAYE)Pay Related social Insurance (PRSI) and Universal Social Charge (USC) on the value of the benefit.

Long service awards

You may decide to pay a long make a long service award to your employee. This award is not a taxable benefit in kind, where all of these conditions are met:

  • the award is made to mark long service (must be 20 years or more)
  • the award is a tangible item (that is, not vouchers, bonds or cash)
  • the award cost is €50 or less for each year of service
  • no similar award has been given to your employee within the last five years.

If these conditions are not met, your employees must pay PAYE, PRSI and USC on the value of the award.

Exceptional performance awards

You may pay and exceptional performance award to your employee. This award is a taxable benefit in kind. Your employee must pay PAYE, PRSI and USC on the value of the award.

If you wish to make a tax free award, the value of the award must be grossed up. See Taxation of benefits for information on grossing up.