Every December, many companies and workers ask themselves the same questions: if a Christmas hamper is given one year, is the company always obliged to give it?, is it considered salary?, do you have to pay taxes on it even if its contents cannot be consumed? Far from being a simple detail, the Christmas hamper can have labor, tax, and contribution consequences that are worth knowing about.
From a labor perspective, the key is to determine whether the basket remains a one-time gift or if, on the contrary, it has become an acquired right. This happens when the company delivers it repeatedly and consistently over time, with a clear intention to maintain it.
According to Alejandro Alonso, senior labor lawyer at RSM, "the continued delivery of the Christmas basket can become consolidated as a more beneficial condition and **become incorporated into the employment contract**, ceasing to be a mere gratuity".
In these cases, he adds, "the company cannot unilaterally withdraw it without an agreement, just cause, or without resorting to the procedure for substantial modification of working conditions established in Article 41 of the Workers' Statute."
This scenario is especially frequent in years of cost adjustment, when some companies assume that the basket is dispensable by definition. However, having delivered it for several consecutive years can seriously limit that decision.
Fiscal Dimension
To this labor dimension, the fiscal one is added. As Blanca González, manager of the fiscal area at RSM, recalls, "the Directorate-General for Taxation considers that the Christmas hamper constitutes remuneration in kind when it is delivered in the form of goods, so it must be taxed in personal income tax as employment income." The worker is therefore obliged to declare its value, which is calculated according to market value.
One aspect that generates recurring doubts is whether this taxation is maintained when the worker cannot consume part of the content, for example, alcohol or other products due to health reasons or personal convictions. "The fact of not consuming the products does not eliminate the tax consideration of the basket as remuneration in kind," clarifies González, "although in these cases it is advisable for the company to offer equivalent alternatives."
In addition, the basket must be **reflected in payroll and contribute to Social Security** as in-kind salary, within the legal limit of 30% of the total salary. A cost that many companies do not always incorporate into the real calculation of this benefitRegarding the **company**, the expense can be **deductible for Corporate Tax** if the delivery of the basket constitutes a usual and proven practice. **The same does not apply to VAT**. "VAT regulations and the reiterated criterion of the Directorate-General for Taxation expressly deny the deduction of input VAT on Christmas baskets, lunches, or dinners for employees," states González.Recent jurisprudence has also provided relevant nuances. Alejandro Alonso recalls that "the **Supreme Court**, in a ruling in September 2025, validated that the company allows employees to choose between the traditional gift basket or a gift voucher of equivalent value, without this implying the loss of the right in subsequent years when the basket has become a more beneficial condition."
The conclusion is clear: the Christmas hamper is no longer legally innocuous. Before withdrawing, modifying, or replacing it, it is advisable to analyze whether it has become a consolidated practice and to review its correct labor and tax treatment. What seems like a simple Christmas gesture can end up having legal and economic effects far more significant than it appears.