Should the Christmas basket appear on my payroll? This is what the law says about this type of remuneration

Christmas is just around the corner and with it comes the long-awaited vacations of thousands of workers who decide to take a few days off. In addition to being a time when trips and family gatherings are frequent, they are also a few days of traditions within the work environment. This can be seen in the classic Christmas baskets with which many companies surprise their staff every year.

These baskets usually include typical products for these dates, such as nougats, chocolates, wines, sausages or even small gifts. gourmet. Although they are perceived as a gift, many wonder How is this benefit actually accounted for within the company and if it is reflected in the payroll or is given completely outside of salary. This doubt is more common than it seems and can generate some debate each year between employees and employers.

Should the Christmas basket be reflected in the payroll?

According to current regulations, the Christmas basket that the company delivers to its employees during these months It is considered remuneration in kind, so it must be included in the payroll of the workers and are subject to taxation by the Personal Income Tax (IRPF).

Although article 15 of the Corporate Tax Law establishes that donations and liberalities will not be deductible, it also specifies that “expenses for services to clients or suppliers nor those that, in accordance with the uses and customs are carried out with respect to the company’s personnel“Therefore, spending on Christmas baskets can be deductible as long as they are delivered in the usual way.

Furthermore, Christmas baskets end up being added to the Social Security contribution base and this makes them a additional expense that must be declared before the Tax Agency. Although these payments in kind do not directly increase the salary, their value adds to the worker’s earnings and, therefore, affect the calculation of the contribution bases and the tax base for taxation. This is different for new companies, which will not be able to deduct it until they have given it to their employees for at least two years.

Can you stop giving me the Christmas basket?

Companies have no obligation to give their workers a Christmas basket. However, if it is considered a tradition because the organization has given it away several years in a row, They cannot stop doing it from one moment to the next because it would be an acquired rightas established in ruling 203/2019 of the Supreme Court. If you want to stop giving them, it is necessary for the company to reach an agreement with the Works Committee and for it to accept this change.