Give your employees a nice extra? This is what you need to know about the WKR.

Christmas package, team outing or maybe even a sports subscription: many business owners want to give their employees something extra from time to time. This is not only fun for your team, but as an SME you can also benefit financially. Thanks to the Working Costs Regulation (WKR), this can often be done advantageously and untaxed.

Stephan Meester of ZekerArbo explains in an article in De Ondernemer. It is actually a smart way to give your team something extra while keeping an overview of the costs."

But beware: there is a catch

Those who don't keep track of the scheme properly can face a hefty tax bill at the end of the year. If you spend more than your allowance, the tax authorities will charge 80% tax on the amount you exceed. That can add up considerably.

A mathematical example

Suppose your fiscal wage bill is € 1,000,000. Then in 2025 you have a free space of € 14,760 (1.92% over the first € 400,000 and 1.18% over the rest).

Do you spend a total of €20,000 on perks?
Then you exceed your free space by €5,240.
You pay 80% tax on that: over €4,000.

A shame, because you could have invested that money in your employees.

How does the WKR work in practice?

The WKR gives you room to give extras untaxed. Think of a Christmas package, a staff party or a gift for an anniversary. In addition, there are targeted exemptions (such as travel expenses or health and safety glasses) and nil valuations (such as coffee and tea in the workplace) that you can always use without them counting towards your free space.

Three tips from Stephan Meester

Keep track, Write down during the year what you spend and under which item it falls.
Make choices with impact. Use the ERC for perks that your team really appreciates.
Work together with your accounting department. That way you avoid surprises and keep a grip.

More than a cost

A good salary is the basis, but it's the extras that often make the difference. "Those who use the WKR intelligently turn rewarding from an expense into an investment in your team," Meester said.

In the full article on the site of De Ondernemer you can read exactly how the WKR works, which allowances can be untaxed and how you can get the most out of them.

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