How much to spend on employee gifts
We couldn't find a current, independent benchmark for how much companies spend per employee gift, so choose a per-gift amount you can give every person on the team, and check the tax rules before you pick a gift card. Gratos lets you set a total budget for each campaign and warns you if the gifts go over it, and shows the exact total, tax and shipping included, before anyone approves.
Updated
How much should a company spend per employee gift?
As much as you can give every person, every time that occasion comes round. Consistency matters more than the number: a $40 gift for everyone reads as fair, and a $100 gift for some and nothing for others does not.
Many of the figures quoted online for "average spend per employee" come from companies that sell gifts, and many carry no date. We couldn't find a current, independent figure for employee gifts, so we don't quote one. The table below lists only the figures we could link to a source and date.
What do the sources say, by occasion?
Figures checked October 29, 2026.
| Occasion | What the source says | Source |
|---|---|---|
| Gift to a client or business contact | A business can deduct up to $25 per recipient per year for business gifts | IRS Publication 463 (2025 edition) |
| Gift from a broker-dealer to someone at another company | FINRA raised its limit on these gifts "from $100 to $300", per person per year, effective March 30, 2026 | FINRA, February 18, 2026 and Regulatory Notice 26-05, read October 29, 2026 |
| Recipient-choice gift collections | Loop & Tie sells fixed-value collections from $30 to $250 | Loop & Tie, read October 29, 2026 |
| Employee holiday, birthday or work anniversary gift | No current, independent figure found | — |
The last row is the honest one. If you see a confident "average" for employee gifts, check who published it and when.
Is $100 per employee gift too much?
Not if you can give it to everyone. Do the multiplication before you decide: $100 for a team of 40 is $4,000 for one occasion, before tax and shipping. If that's more than the occasion is worth to you, a lower amount given to everyone beats a higher one given to a few.
Ask two more questions:
- How often? A birthday and a work anniversary for each person is two gifts a year, plus any holiday gift.
- What's the alternative? If people would rather have the money, a bonus through payroll may serve them better (see holiday gifts for employees).
How do taxes change the budget?
They can change what you give more than how much.
- Gift cards are treated like cash. IRS Publication 15-B says cash and cash equivalents, including gift cards, are never excludable as a de minimis benefit (Publication 15-B).
- A small, occasional non-cash gift may be de minimis. See Publication 15-B and the IRS page on de minimis fringe benefits.
- Gifts to clients follow a different rule: the $25-per-recipient deduction limit in Publication 463.
We can't tell you how these rules apply to your company. Ask your accountant.
How do budgets work in Gratos?
- A total budget per campaign. You set it when you create the campaign. Gratos suggests a gift for each person from what's saved about them, or you choose one. You review the list and approve the campaign's total. If the estimated total goes over the budget, Gratos warns you before approval; the budget does not block it.
- The exact total before approval. Each approval is for the store's price, tax and shipping. If the store's total at checkout differs from it by more than 3 cents, Gratos stops before paying and nothing is charged (Terms).
- Account budgets show spend. Owners and admins set a budget for each period and can see how much of it has been used. A campaign that goes over it shows a warning; the budget does not block it.
Questions
- Should every employee get the same amount?
For the same occasion, yes. Keep the amount the same and let the gift differ. Tell Gratos the amount when you ask, and review the list before you approve.
- Do tax and shipping count?
They count toward what you pay. Gratos shows the exact total, tax and shipping included, and that total is what someone approves.
- Does a budget in Gratos stop a campaign that goes over?
No. The campaign cap and the account budget warn; they do not block a campaign.
- Why are there so few figures on this page?
Because we list only figures we can link to a source and date. Most "average spend" numbers online come from gift sellers and carry no date.