9 Questions you may have about the food allowance

3 de April, 2025

With a very important role in the monthly budget of many workers, the food allowance is a supplement to the salary that companies can give to employees in order to increase their purchasing power when it comes to spending on meals and food.

However, this social benefit tends to generate some questions, both on the part of the workers and the employers themselves. Find out how the food allowance works in our country and get answers to some common questions.

1 – What is the food allowance?

Although it can be confused with remuneration, the food allowance is actually a social benefit that complements salary. This benefit is granted by companies with the aim of supporting employees with their food expenses during the working day and can therefore be used to purchase meals or foodstuffs to prepare them.

Ultimately, the aim of this subsidy is to guarantee access to adequate and nutritious food and, consequently, to contribute to the health, well-being and quality of life of workers.

2 – Is the food allowance mandatory?

The food allowance is a benefit whose value is legislated for public sector workers. However, the obligation to provide it is not provided for in the Labor Code (CT), so it is not mandatory by law. It is therefore at the discretion of each private company whether or not to grant this social benefit to its employees.

Even so, most employers choose to grant it in order to maximize their employees’ disposable income for meals and food expenses.

3 – Is there a minimum or maximum value?

In April 2023, the food allowance was set at €6.00/day for the Public Sector, and this figure will still be maintained in 2025.

In the case of the private sector, on the other hand, payment of the allowance is not compulsory and, for this reason, there is no minimum or maximum limit. It’s up to each company to decide whether and how much they want to give their employees.

4 – Is the food allowance subject to tax?

Since it is a social benefit, the food allowance has a different tax framework to the salary wage and both the company and the employee may have tax benefits associated with it.

The taxation of the allowance depends on the amount paid and the form in which it is paid. If the allowance is paid in cash, together with the salary, the employee is exempt from paying TSU and IRS up to a daily amount of €6.00. In turn, the company is also fully exempt from TSU. Above €6.00/day, the respective deductions apply to the remaining amount.

If the allowance is given via a meal card, the exemption limit is 70% higher, i.e. 10.20€/day. Up to this amount, companies are exempt from TSU and employees are exempt from TSU and IRS. From this amount onwards, the respective Social Security contribution and withholding tax also apply.

Practical example:
Considering that a worker receives €10.00/day in food allowance. If he receives this amount in cash, he is exempt from tax up to €6.00 and has to pay IRS and Social Security on the remaining amount – in this case, €4.00. If you receive the €10.00/day in a meal card, you don’t pay any taxes and receive the full net amount.

5 – Can the amount of the allowance be different in the same company?

Article 24 of Código do Trabalho states that workers have the right to equal opportunities and equal treatment in employment and working conditions. This right must be verified, among other things, in access to “remuneration and other benefits”, which includes food allowances.

Since it is the company that chooses to allocate this supplement to the salary in order to support employees’ food costs, the principle of equality must be respected. As such, employees from the same company who are in the same circumstances should receive the same amount of allowance.

6 – Are part-time workers entitled to pay?

According to Article 154 of Código do Trabalho, part-time workers cannot be treated less favorably than full-time workers in comparable situations.

Thus, if the payment of food allowance is included in the individual employment contract, or is provided for in a collective bargaining agreement, part-time workers are entitled to receive it.

If the working period is 5 hours or more, the stipulated amount must be paid in full. If it is less than 5 hours, the amount of the allowance is calculated in proportion to the number of hours worked.

7 – Are remote workers entitled to the allowance?

The purpose of the food allowance is to ensure access to decent food during the working day, regardless of where the employee works.

Thus, if the allowance is provided for in the individual or collective employment contract, workers are entitled to receive it, even if they are working remote (as provided for in Law no. 83/2021, of December 6).

8 – Does a company with a canteen have to pay the allowance?

If the employer provides a cafeteria or canteen service free of charge, then payment of the allowance is waived.

In addition to providing a canteen service, companies can also provide a food allowance.

9 – Are workers on vacation or sick leave entitled to pay?

The food allowance is paid for each day actually worked, i.e. it is not required to be paid on days when the employee does not work.

This applies to vacation days and absences due to illness (sick leave), but also to other situations such as: periods of parental leave or marriage leave, justified absences due to the death of family members or assistance to family members, unjustified absences, when exercising the right to strike, when serving a preventive suspension and when serving disciplinary sentences.

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