The Small Benefit Scheme is one of the most effective ways for Irish employers to reward employees in a tax-efficient way. It allows businesses to provide qualifying non-cash rewards without the employee paying income tax, USC or PRSI, provided the relevant Revenue conditions are met.
The Scheme gives employers flexibility in the type of reward they provide, however, gift cards and gift vouchers remain the most popular option. They are easy to manage, simple to distribute and give employees more choice than a traditional staff gift.
The question for employers is not whether to use gift cards, but which type of gift card offers the best value for employees and the business.
For many organisations, AllGo Mastercard Gift Cards are the best choice for the Small Benefit Scheme because they give employees the freedom to spend their reward anywhere Mastercard is accepted.
Why Gift Cards Work So Well Under the Small Benefit Scheme
Employees value choice. A reward feels more meaningful when it can be used for something genuinely useful, whether that is groceries, a meal out, online shopping, travel, household spending or a personal purchase.
Gift cards also make life easier for employers. They can be used for Christmas rewards, staff recognition, long-service awards, sales incentives and employee wellbeing initiatives.
To qualify under the Small Benefit Scheme, the reward must be non-cash and cannot be exchanged for cash. A qualifying gift card allows employees to purchase goods and services while helping employers deliver a valuable reward in a tax-efficient format.
Comparing Gift Card Options
There are several types of gift cards commonly used under the Small Benefit Scheme. Each has advantages, but they do not all offer the same level of flexibility.
Supermarket Gift Cards
Supermarket gift cards are popular because they can be used for everyday spending. Cards from retailers can provide practical value for employees, particularly at Christmas or during periods of higher household costs.
However, the card can only be spent with that retailer. Employees who do not regularly shop there may not get the same value from the reward.
Multi-Retailer Gift Cards and Vouchers
Multi-retailer gift-cards offer more choice than a single-store card. They can be redeemed across a network of participating retailers, including many well-known high-street brands.
However, the retailer network can still be limited. Employees need to check where the card is accepted, and they may not be able to use it with local businesses, online retailers outside the network or the services they use most often.
Different providers also offer different formats. Some are physical cards only, while others provide digital options. It is important to compare both the retailer list and the delivery options before purchasing.
Local Shopping Vouchers
Local shopping voucher schemes in towns can be a great way to support local businesses while rewarding staff.
They are particularly suitable for employers with teams based in one area. However, they can be less practical for remote workers, employees living outside the area or people who prefer online shopping.
Open-Loop Mastercard Gift Cards
Open-loop Mastercard gift cards offer the widest spending flexibility. Rather than being limited to one retailer or a closed network of participating shops, employees can use them wherever Mastercard is accepted.
That includes high-street stores, independent businesses, restaurants, pharmacies, petrol stations and online retailers. Depending on the card and provider, they can also be used abroad.
This level of choice makes an open-loop Mastercard gift card a more inclusive reward for a diverse workforce.
Why AllGo Mastercard Gift Cards Are the Best Choice
AllGo Mastercard Gift Cards are designed to give employees a reward they can use in the way that suits them best.
Instead of asking employees to choose from a limited retailer list, AllGo Mastercard Gift Cards allow them to spend their reward at millions of Mastercard-accepting locations. This gives the reward practical value, whether employees want to use it for essential spending, a personal treat, online shopping or a local business.
AllGo Mastercard Gift Cards are particularly well suited to modern workplaces because they offer:
- Broad acceptance wherever Mastercard is accepted, including online and in-store.
- Greater employee choice than supermarket cards or closed-loop vouchers.
- Physical and digital card options to suit different employee preferences.
- Easy distribution for office-based, hybrid and remote teams.
- Direct delivery options for employees working from home.
- A professional reward experience that feels useful rather than restrictive.
- A non-cash reward format suitable for use under the Small Benefit Scheme, subject to employers meeting all relevant Revenue conditions.
A Better Experience for Remote and Hybrid Teams
Distribution is an important consideration when choosing a Small Benefit Scheme reward.
Traditionally, employers ordered gift cards in bulk and distributed them from the office. That approach can be difficult for organisations with hybrid teams, remote employees or staff based across multiple locations.
AllGo offers a more flexible approach. Employers can choose physical cards for traditional in-person distribution or digital gift cards that can be sent directly to employees by email. This makes it easier to reward every member of the team, regardless of where they work.
Digital options can also be particularly useful for time-sensitive rewards, such as Christmas recognition, employee milestones or last-minute thank-you gifts.
How to Choose the Best Gift Card for the Small Benefit Scheme
Consider the following:
- Can employees spend the reward where they want?
- Is the card suitable for online, in-store and local spending?
- Are physical and digital formats available?
- Can cards be delivered directly to remote employees?
- Is the ordering process straightforward for HR and payroll teams?
- Does the provider offer reliable support and clear guidance on using the cards within the Small Benefit Scheme?
AllGo Mastercard Gift Cards are designed to meet these practical needs while giving employees maximum freedom to choose how they spend their reward.
The Best Gift Card Gives Employees Real Choice
The Small Benefit Scheme is an excellent way to recognise employees and deliver a meaningful reward in a tax-efficient format.
Supermarket cards, multi-retailer vouchers and local shopping schemes can all be useful in the right circumstances. However, they each place limits on where and how employees can spend their reward.
AllGo Mastercard Gift Cards offer a more flexible alternative. With the ability to spend online, in-store and with businesses that accept Mastercard, employees can use their reward in the way that matters most to them.
For employers looking to make the Small Benefit Scheme simple to manage and genuinely valuable for staff, AllGo Mastercard Gift Cards are the best choice.
👉 Explore gift card options for your business at allgogiftcard.com
