Employee Gift Cards and Gift Ideas 2026: Tax Rules, 20 Ideas and FAQ

A well-chosen gift tells people their work was noticed. A poorly chosen one ends up in a drawer. The difference is rarely the price. It is whether the gift fits the person, arrives on time and does not create a tax surprise.

This guide covers how to plan employee gifts and gift cards for Christmas 2026, how they are taxed in Lithuania, Latvia and Estonia, 20 ideas that work for office, remote and frontline teams, and answers to the questions HR teams ask most.

How to plan employee gifts

• Start early. For Christmas, agree the budget and the format by mid-November. Physical gifts need time for ordering, packing and delivery to every location.
• Set one budget per person. The same amount for everyone at the same level feels fair and is easy to explain.
• Let people choose where you can. Teams differ by age, family situation and taste. A gift people pick themselves gets used; a one-size gift often does not.
• Think about every location. Shift workers, drivers and remote staff should receive their gift on the same day as the office.
• Add a personal message. A few words from the manager about the year often matter more than the gift itself.
• Check the tax-free limit. It is 200 euros per employee per year in Lithuania and 100 euros in Latvia. In Estonia, every gift to an employee is taxed. Details below.

How gifts and gift cards for employees are taxed

Lithuania

Prizes and gifts an employee receives from their employer are free of personal income tax up to 200 euros per calendar year in total (Personal Income Tax Act, Article 17(1)(39)). The amount above 200 euros is taxed as employment-related income. Ask your accountant how social insurance contributions apply in your case.

Latvia

Since 1 January 2025, gifts from an employer worth up to 100 euros per tax year are free of personal income tax. The amount above 100 euros is taxed like salary. Gift cards count as gifts, so the same limit applies.

Estonia

A gift to your own employee is a fringe benefit (erisoodustus). The employer pays income tax at 22/78 and social tax at 33% from the first euro. A 30-euro gift card therefore costs the employer about 51 euros in total: 8.46 euros of income tax and 12.69 euros of social tax on top.

Tax rules change, and gifts to business partners follow different rules. Confirm the treatment with your accountant before you order.

20 employee gift ideas for 2026

Gifts that let people choose

1. Digital gift cards. The simplest way to give everyone the same value while letting each person choose, for example Maxima, Wolt, Amazon, Netflix or local marketplaces such as Pigu.lt, 220.lv and Kaup24.ee. Easy to send to the whole team at once, including people outside the office.

2. A flexible benefits top-up. A one-off addition to each employee's benefits budget, to spend on what they need, from sport to travel.

3. Experience vouchers. Restaurant, spa, concert or theatre vouchers that employees use when it suits them.

4. Shopping centre gift cards. One card, such as Akropolis in Lithuania or Akropole in Riga, works in many shops and gives wide choice close to home.

Wellbeing and time

5. An extra day off. Often the most valued gift of all, and nobody has to shop for it.

6. Sport or gym access. A few months of a gym, pool or class pass supports a habit beyond the holidays.

7. Spa or massage. A simple way to say that rest matters too.

8. Health check or wellbeing app. Practical care that shows interest in people, not only in results.

Practical gifts

9. Home office upgrades. A laptop stand, a good lamp or noise-cancelling headphones for those who work from home.

10. Quality everyday items. A good thermos, backpack or umbrella that gets used every day.

11. Books and learning. A book voucher, an online course or a conference ticket for people who like to grow.

12. Eco-friendly products. Reusable bottles or sustainable, locally made goods for teams who care about the environment.

Taste and local flavour

13. Hampers from local producers. Coffee, honey, chocolate or cheese from small producers nearby feel personal and support the local economy.

14. A dinner for two. A restaurant voucher gives employees an evening with someone close to them, and a Wolt voucher lets them enjoy dinner at home.

15. Cooking or tasting classes. A shared experience people remember longer than an item.

Team and recognition

16. A team celebration. A dinner, outing or activity day the team chooses together.

17. Public recognition. A thank-you the whole company can see, ideally with points employees can redeem.

18. A handwritten note from the manager. It costs nothing and is often kept for years.

19. A donation in the team's name. Let the team pick a local cause and give on their behalf.

20. Branded clothing people want to wear. A quality hoodie or jacket, not a cheap mug, and only if your team likes wearing the brand.

Why gift cards work for larger teams

For a team of 50 or 500, the hard part is not the idea. It is buying, packing, delivering and tracking hundreds of gifts. Digital gift cards solve most of that: one order, one invoice, and every employee receives the gift on their phone on the same day, wherever they work.

With MELP corporate gift cards, you send gift cards to the whole team from one platform and track them in one place. Employees choose from 10,000+ rewards, and the typical MELP reward is around 30 euros. Combined with employee recognition, the gift can arrive together with a personal thank-you from the manager.

Frequently asked questions

Are gift cards for employees taxable?

It depends on the country. In Lithuania, gifts and gift cards from an employer are free of personal income tax up to 200 euros per employee per year. In Latvia, the limit is 100 euros per year. In Estonia, there is no tax-free limit: every gift to an employee is a fringe benefit taxed from the first euro.

Does the tax-free limit apply per gift or per year?

Per employee per year. In Lithuania and Latvia, all gifts and prizes from the same employer during the calendar year are added together. Only the amount above the limit is taxed.

Is a gift card treated differently from a physical gift?

No. For employees, a gift card counts as a gift, just like an item or a voucher for a service, so the same limits and rules apply.

How much should we spend per employee?

The typical MELP reward is around 30 euros. That amount leaves room for several gifts a year within the Lithuanian 200-euro and Latvian 100-euro tax-free limits, for example at Christmas, on birthdays and at work anniversaries.

Gift card or physical gift: which is better?

A gift card lets each person choose, needs no packing or delivery and reaches remote and shift workers on the same day. A physical gift can feel more personal when it is chosen with care. Many companies combine the two: a gift card plus a handwritten note from the manager.

When should we order Christmas gift cards?

Agree the budget and the list of employees by mid-November. Digital gift cards can then be sent in minutes, so you can choose the exact day, for example the last working day before the holidays.

Can employees in different countries receive the same gift?

Yes. With MELP, employees in Lithuania, Latvia and Estonia receive their gift in the same app and choose from rewards available in their country. Remember that the tax treatment differs by country.

Can we add a personal message?

Yes. With MELP recognition, the gift can arrive together with a thank-you message from the manager that the whole team can see.

Plan the whole year, not only Christmas

Gifts work best when they are not a once-a-year event. Birthdays, work anniversaries, finished projects and holidays are all good moments to say thank you. Use the public holidays calendar to plan the year ahead.