Meal allowance: Amount exempt from taxation rises to €8.32 on cards

29 de November, 2022

The government’s negotiations with some civil service unions have resulted in an agreement to increase the meal allowance. This change also increases the amount of the meal allowance that is exempt from taxation. Find out what will change!

Meal allowance rises to €5.20 for civil service workers

Ordinance no. 280/2022 of November 18th updates the value of the meal allowance granted to public sector workers, which increases from €4.77/day to €5.20/day, with retroactive effect from October 1, 2022.

This increase also raises the amount exempt from taxation, which continues to depend on the format in which the allowance is granted:

• If paid in cash, the exempt amount becomes €5.20/day;
• If it is paid by voucher or card, the exempt amount becomes €8.32/day (until now it was €7.63/day).

For companies that give their employees up to €8.32/day in vouchers or cards, the tax framework is as follows:

• Total TSU exemption for the company;
• Total exemption from IRS and TSU for the employee.

This change opens up the possibility for companies to increase their employees’ liquidity through the meal allowance without this resulting in an increase in the tax burden.

Note: in December 2024, the maximum amount exempt from card taxation will be €10.20/day.