Meal allowance 2025: What amounts to consider

23 de January, 2025

The meal allowance is a social benefit granted by companies to their employees in order to guarantee access to a nutritious meal during the working day.

Although it is not compulsory, the meal allowance is one of the most popular employee benefits in Portugal and most employers choose to grant it in order to support employees with their food expenses.

At a time when the price of food continues to weigh heavily on family budgets, the amount workers receive in meal allowances can be a valuable help.

Discover the values to consider in 2025.

Meal allowance amounts and tax framework

The approval of the State Budget for 2025 introduced new changes regarding the meal allowance, namely the maximum amount exempt from taxation on meal cards.

The amount of the meal allowance paid to public administration workers remains at €6.00/day. On the other hand, if the allowance is paid through a social voucher or meal card, the maximum amount exempt from taxation will be 70% more (until 2024 it was 60% more).

In practice, this means that if companies choose to grant the allowance in the form of a meal card, the tax exemption will now apply up to the amount of €10.20/day (until 2024 this amount was €9.60/day).

Thus, taxation varies depending on the format in which the allowance is granted to workers:

• Cash: total exemption from TSU for the company and from IRS and TSU for employees up to a maximum amount of €6.00/day. If the company wishes to allocate a higher amount, the respective discounts will apply to the remaining amount.
• Meal card: total exemption from TSU for the company and from IRS and TSU for employees up to a maximum of €10.20/day. Above this amount, the respective discounts also apply.

Practical example

If your company gives you €10.20/day in meal cards, the total net amount you receive over a year in meal allowance is €2,468.40. If the same amount is paid in cash, and the respective IRS and Social Security deductions are applied, the annual amount becomes €2,143.16.

This means that, by receiving the allowance in cardboard form, you have an annual gain of 325.24€. In a scenario where a meal costs around €10, this gain is equivalent to an extra 30 meals a year.

Make your simulation at any time here.

and long weeks and bridges in 2025. With good planning, this year brings many opportunities to relax, recharge and enjoy quality time with your family, friends or yourself.

Read also: Meal card allowance: Advantages for companies and employees