How does the meal card work? Frequently asked questions
11 de October, 2023
The meal card is one of the formats through which companies can give their employees a meal allowance. This has become an increasingly popular option for Portuguese companies, as it allows them to maximize the amount given to employees without increasing the tax burden (compared to cash payments).
Ask all your questions about how meal cards work in Portugal.
What is a meal card?
The meal card is an electronic card pre-loaded by the company with the amount stipulated for the payment of the meal allowance. The company loads this card, usually when the monthly salary is paid, with the amount of the allowance corresponding to each day worked by the employee.
Like debit bank cards, the meal card is also protected by a PIN code.
Read also: 10 things you need to know about the Edenred meal card
What are the advantages of the meal card for the company and the employee?
Paying meal allowances by card has numerous advantages for companies and employees, one of the main ones being the associated tax benefits .
Up to €10.20/day – 70% more than when paid in cash – employees are exempt from TSU and IRS and companies are exempt from TSU. This allows employers to maximize their employees’ disposable income for food expenses without increasing the tax burden.
This is particularly important at a time when families are facing a sharp rise in the price of food.
Where can the meal card be used?
Meal cards are intended for the purchase of meals or foodstuffs with a view to cooking them. They can therefore be used in restaurants or food retail establishments such as supermarkets, cafés, pastry shops, bakeries, butchers, fishmongers and the like.
Do workers need to have an associated bank account?
No. The meal card is a reloadable prepaid card and is not linked to any bank account. Employees and companies don’t need to worry about this.
Does the meal card balance have to be used for a single purchase?
No. The balance on the card can be divided between several purchases.
Is it compulsory to spend the balance of the meal card in the month in which the allowance was paid?
No. If the balance is not spent in full, the remaining amount accumulates for the following month. This amount remains available until the card expires.
Is it possible to make deposits, withdrawals or transfers with the meal card?
No. The meal card can only be loaded by the company with the amount defined for the payment of the meal allowance. No money can be deposited on the card, no withdrawals can be made and no money can be transferred to or from the meal card.
Is it possible to make online payments with the meal card?
Yes. This is the case with the Edenred meal card, which can be linked to MB WAY and therefore allows contactless payments to be made via cell phone and online purchases on member websites and platforms.
Do you have any more questions about meal cards? Check out our frequently asked questions section or contact us. We’re always happy to help.
Article updated in December 2024 (to take into account the new meal allowance rates in force).