There's no rule saying you have to pay early in December. If you normally pay at the end of the month, most businesses bring it forward to the last Friday before Christmas - Friday 18 December in 2026. Report it to Revenue on or before the day you pay, with that actual date as the pay date. A cash Christmas bonus goes through payroll as normal, but you can give up to five non-cash gifts worth up to €1,500 in total a year tax-free under the small benefit exemption.
We'll be honest, we're not payroll experts and this isn't a payroll guide. But Christmas payday is one of those questions that lands on the owner's desk every December, so here's what we've learnt and what Revenue actually says.
When should I pay staff in December?
If you pay monthly at the end of the month, the usual choices are the last Friday before Christmas or the last working day before Christmas. You don't have to do either - paying on your normal date is completely fine - but most people really appreciate having their pay before Christmas, and it costs you nothing but a bit of cash flow.
| How you normally pay | Normal December payday (2026) | Common Christmas option |
|---|---|---|
| Last working day of the month | Thursday 31 December | Friday 18 or Wednesday 23 December |
| Fixed date, the 25th | Friday 25 December (Christmas Day) | Thursday 24 December, or earlier |
| Weekly on Fridays | Friday 25 December and Friday 1 January (both public holidays) | Thursday 24 and Thursday 31 December |
Worth checking: if your payday lands on a public holiday (and this year a lot of them do), talk to whoever runs your payroll early - the banks' Christmas cut-offs come round quicker than you'd think.
Paying early at Christmas: what Revenue needs
Since PAYE Modernisation, payroll has to be reported to Revenue on or before the day you pay staff, and the pay date is the date they actually get the money. So if you pay on 18 December instead of 31 December, 18 December is your pay date and the submission needs to go in by then. It's the real date you pay, not your usual payday.
The one to be careful with is paying January's wages early, in December - for example, if you're closed and pay people for the first week of January before Christmas. Payments made in one tax year have to be reported with a pay date in that tax year, and Revenue has specific guidance on how advanced weeks are taxed when they cross into a new year. If you're doing anything like that, check it with your payroll provider first.
The long wait until January payday
This is the bit that really bites. Pay on Friday 18 December and the next payday at the end of January (Friday 29 January 2027) is six weeks away. After Christmas. With the credit card bill coming in.
You don't have to fix it, but do warn people. A line in the Christmas email saying "December's pay is early, so January's going to be a long one - plan for it" saves a lot of grumbling. Some businesses offer a small advance in January for anyone who's stuck, which is a nice gesture if you can manage it - just agree in writing how it'll be paid back.
Christmas bonuses and tax-free gifts
A cash Christmas bonus is just pay. It goes through payroll with PAYE, PRSI and USC like everything else, so a €200 bonus won't land as €200 in anyone's account.
If you'd rather give something tax-free, the small benefit exemption lets you give each employee up to five non-cash benefits a year - a voucher, a hamper, that kind of thing - worth up to €1,500 in total, without tax. It can't be cash, and it can't be swapped for salary. Check Revenue's guidance before you rely on it, especially if you've already given gifts earlier in the year, because only the first five count.
How to tell staff about Christmas payday
Put it in the Christmas email you send in October, and again in a short reminder in early December. Three things: the date December's pay goes in, the date January's goes in and a heads up about the gap. We've got a ready-made payday email in our Christmas email to staff templates, with a Word download.
Book Time Off doesn't do payroll, we should say that straight away. What it does do is keep a proper record of everyone's leave, and the admin Reports view breaks down leave taken per person by type over whatever period you pick - with a CSV export. So if someone's had unpaid leave over Christmas, your payroll person isn't relying on a sticky note to find out.
→ Start free trialFor the rest of the Christmas plan - deadlines, who's off and the closure - see how to manage Christmas annual leave.
The legal bit, if you need it
You don't need this to get Christmas sorted, but here's what the rules actually say if anyone asks.
- There's no legal requirement to pay early at Christmas. Pay on the date in the contract unless you choose to bring it forward.
- Payroll must be reported to Revenue on or before the date you pay employees, and payments made in a tax year must be reported with a pay date in that tax year (Revenue).
- A cash bonus is taxable pay, subject to PAYE, PRSI and USC like other earnings (Revenue).
- The small benefit exemption covers up to five non-cash benefits a year with a combined value of up to €1,500 per employee (Revenue).
Sources
| Revenue | Guidance for employers on aligning pay dates and end of year issues · Pay dates, paying in advance at Christmas and tax years. Checked October 2026. |
| Revenue | Small benefit exemption · Non-cash gifts, the €1,500 limit and five benefits a year. Checked October 2026. |
| Citizens Information | Public holidays · Christmas 2026 public holidays. Checked October 2026. |
FAQs
This is practical, general information for employers in Ireland. If you've got a dispute brewing or something unusual in a contract, check with the Workplace Relations Commission (its information service is free) or an employment solicitor.