An employer may grant New Year gifts to employees’ children up to 15 years of age on the basis of Article 119, paragraph 2 of the Labor Law.

By its internal act, an employer may also regulate gifts for children older than 15, but in that case the full amount of the gift is treated as salary and is subject to tax and social contributions.

The tax-free amount per child for the period from 1 February 2025 to 31 January 2026 is RSD 14,077.

This amount may be paid in cash or provided in the form of gift packages. It is sufficient for the director to adopt a decision on granting New Year gifts. The decision should specify the amount to be granted, the child’s age, and the date on which the gift is handed over.

Any amount above the tax-free threshold is treated as salary.

You can download a free sample decision on granting New Year gifts by clicking: Download the decision.