{"id":115017,"date":"2023-01-09T10:01:54","date_gmt":"2023-01-09T10:01:54","guid":{"rendered":"https:\/\/edenred.pt\/uncategorized\/meal-allowance-everything-you-need-to-know\/"},"modified":"2025-01-30T10:51:33","modified_gmt":"2025-01-30T10:51:33","slug":"meal-allowance-everything-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.edenred.pt\/en\/news\/employee-benefits\/meal-allowance-everything-you-need-to-know\/","title":{"rendered":"Meal allowance: Everything you need to know"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\" id=\"1---O-que-\u00e9-o-subs\u00eddio-de-refei\u00e7\u00e3o\"><a href=\"#Heading1\">What is the meal allowance<\/a><\/h4>\n\n\n\n<h4 class=\"wp-block-heading\"><a href=\"#Heading2\">How can it be attributed<\/a><\/h4>\n\n\n\n<h4 class=\"wp-block-heading\"><a href=\"#Heading3\">Amounts allocated<\/a> <\/h4>\n\n\n\n<h4 class=\"wp-block-heading\"><a href=\"#Heading4\">Tax framework<\/a><\/h4>\n\n\n\n<h4 class=\"wp-block-heading\"><a href=\"#Heading5\">Who is entitled to receive<\/a><\/h4>\n\n\n\n<p>The meal allowance is a social benefit that aims to <strong>support workers in their food expenses<\/strong>. There have recently been changes to the amount allocated to public sector workers and, consequently, to the amounts exempt from taxation. <\/p>\n\n\n\n<p>That&#8217;s why we think it&#8217;s a good time to review what the law says about the meal allowance. Come and find out all about this benefit! <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Heading1\">What is the meal allowance<\/h2>\n\n\n\n<p>The meal allowance is a social benefit that can be granted by public and private companies to their employees and which aims to <strong>guarantee access to a decent meal during the working day.<\/strong><\/p>\n\n\n\n<p>This allowance is paid for each day worked, which means that the company is not obliged to pay this benefit on days when the employee has not worked (on vacation, on public vacations, due to absence or for another reason).<\/p>\n\n\n\n<p>Although many people take the meal allowance for granted, it <a href=\"https:\/\/edenred.pt\/en\/news\/employee-benefits\/myths-and-truths-about-meal-allowances-in-portugal\/\" target=\"_blank\" rel=\"noreferrer noopener\">is not mandatory for companies to give it to employees<\/a>. In the case of private companies, employees are only entitled to receive it if it is defined in the employment contract (individual or collective).<\/p>\n\n\n\n<p>Even so, the majority of companies in Portugal choose to grant this extra-wage compensation to their workers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Heading2\">How can it be attributed<\/h2>\n\n\n\n<p>The meal allowance can be awarded in two different formats:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>In cash<\/strong>: is received in cash, together with the monthly salary.<\/li>\n\n\n\n<li><strong>By social voucher or card<\/strong>: the meal card is an electronic card (similar to a bank card), pre-loaded by the company with the amount of the allowance.<\/li>\n<\/ul>\n\n\n\n<p>Payment through a <strong>meal voucher or card<\/strong> is the <strong>option increasingly chosen by companies<\/strong>, as it has tax benefits associated with it and guarantees that it will be used for the purpose for which it was given. These benefits apply both to the company itself and to the employee, who can receive a higher value than if they were paid in cash, increasing their purchasing power. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Heading3\">Amounts allocated<\/h2>\n\n\n\n<p>As it is only a benefit, the legislation does not set any limit &#8211; neither minimum nor maximum &#8211; on the amount of subsidy granted by private companies.<\/p>\n\n\n\n<p>The only reference that exists is the amount paid to public sector workers. <a href=\"https:\/\/dre.pt\/dre\/detalhe\/portaria\/107-a-2023-211996386\" target=\"_blank\" rel=\"noreferrer noopener\">Ordinance no. 107-A\/2023 of April 18 updated this amount to \u20ac6.00\/day<\/a> (until now it was \u20ac5.20\/day), with retroactive effect from January 1st, 2023.<\/p>\n\n\n\n<p>This is also the maximum amount exempt from taxation when the allowance is paid in cash. If it is paid in vouchers or cards, <a href=\"https:\/\/edenred.pt\/en\/news\/employee-benefits\/meal-allowance-exempt-amount-on-card-rises-to-10-20\/\" target=\"_blank\" rel=\"noreferrer noopener\">the maximum amount exempt is \u20ac10.20\/day<\/a>.<\/p>\n\n\n\n<p>However, companies have complete freedom to allocate the amount they want.  <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Heading4\">Tax framework<\/h2>\n\n\n\n<p>The taxation of the meal allowance varies depending on the format in which it is granted:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If paid in <strong>cash<\/strong>, workers are exempt from paying <strong>IRS and Social Security up to a maximum daily amount of \u20ac6.00<\/strong>. If they receive a higher amount, they will have to make the respective deductions. <\/li>\n\n\n\n<li>If you pay by <strong>voucher or card<\/strong>, you are <strong>exempt from IRS and Social Security up to a maximum daily amount of \u20ac10.20<\/strong>. After that amount, the respective discounts apply. <\/li>\n<\/ul>\n\n\n\n<p>For example, suppose a worker receives \u20ac10.00\/day in meal allowance. If he receives this amount in cash, he is exempt from tax up to \u20ac6.00 and has to pay IRS and Social Security on the remainder &#8211; \u20ac4.00. If you receive the same amount in the form of a meal card, you don&#8217;t pay any taxes and receive the full net amount.    <\/p>\n\n\n\n<p>Since the non-taxable amount is higher when the allowance is given in the form of a voucher or card, this means that employees have <strong>more disposable income<\/strong> to spend on food. This is why many companies prefer this format: because they can increase the benefit granted to employees without increasing the tax burden.   <\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f1f7ff\"><strong>Why is the tax-free amount higher for meal cards?<\/strong> <br><br>Social meal vouchers have a specific framework because they are considered a social benefit, as they can guarantee that <strong>the value of the allowance is only <\/strong> used <strong>for food expenses <\/strong>(as they can only be used in restaurants and food retail establishments, such as supermarkets, pastry shops, bakeries, butchers, etc). This is not guaranteed when the allowance is paid in cash. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Heading5\">Who is entitled to receive<\/h2>\n\n\n\n<p>All public sector workers are entitled to the meal allowance, as are all private sector workers whose employment contract (individual or collective contract) includes this right.<\/p>\n\n\n\n<p>Let&#8217;s clarify some specific cases:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Teleworking workers<\/strong>: if the allowance is provided for in the individual or collective employment contract, these workers are still entitled to receive it, even when teleworking (as provided for in Law no. 83\/2021, of December 6).<\/li>\n\n\n\n<li><strong>Part-time workers<\/strong>: again, if the payment of the allowance is included in the employment contract (individual or collective), part-time workers are entitled to receive it. If the working period is five hours or more, the amount must be paid in full; if it is less, the amount is calculated in proportion to the number of hours worked. <\/li>\n\n\n\n<li><strong>Companies with a canteen or cafeteria<\/strong>: if the employer provides a free canteen service, then payment of the meal allowance is waived.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Do you still have questions about your meal allowance? We recommend that you talk to your company&#8217;s human resources and clarify any questions. <\/p>\n\n\n\n<p><br><em>Article updated in December 2024 (to take into account the new meal allowance rates in force).<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"What is the meal allowance How can it be attributed Amounts allocated Tax framework Who is entitled to receive The meal allowance is a social benefit that aims to support workers in their food expenses. There have recently been changes to the amount allocated to public sector workers and, consequently, to the amounts exempt from&#8230;","protected":false},"author":4,"featured_media":110466,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[228],"tags":[125,223],"target":[128],"class_list":["post-115017","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employee-benefits","tag-edenred-refeicao","tag-meal-allowance","target-user"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Meal allowance: Everything you need to know - Edenred Portugal<\/title>\n<meta name=\"description\" content=\"Find out what the law says about meal allowance in Portugal. 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