Who is entitled to food allowance?

21 de April, 2025

The food allowance is a benefit granted by companies to their employees in order to help them pay for meals and food during the working day.

Depending on the format in which it is awarded and the amount allocated, this allowance has associated tax benefits for both the employer and the employee. As such, it represents a valuable tool for maximizing employee liquidity without increasing the tax burden.

But in practice, who is entitled to food allowance in Portugal? Find out for yourself.

1 – Public sector workers

All public sector workers are entitled to a meal allowance as compensation for the costs of eating during their working day.

Order no. 107-A/2023 of April 18 updated the amount of the food allowance granted to public sector workers to €6.00/day.

With retroactive effect to January 1, 2023, this figure is still in force and also serves as a reference for the maximum daily amount exempt from taxation in cash. In other words, when the food allowance is paid in cash, it has the following tax benefits up to €6.00/day: exemption from TSU for the company and exemption from TSU and IRS for the employee.

2 – Private sector workers

The obligation to pay food allowance to private sector workers is not provided for in Código do Trabalho (CT). This benefit is a supplement to the employees’ monthly salary and, since labor legislation does not require it, the decision to grant it or not is at the discretion of each employer.

Thus, as far as the private sector is concerned, workers are only entitled to receive food allowance if it is provided for in their individual employment contract or in a collective bargaining agreement.

Where it is awarded, companies have complete freedom to set the amount they pay their employees. The legislation does not set any minimum or maximum limit for the private sector.

In addition, employers can also decide whether to give the allowance in cash or on a meal card. Bearing in mind that the maximum amount exempt from taxation on a card is €10.20/day – 70% more than in cash – this format is becoming increasingly favored by companies in Portugal.

3 – Remote workers

Law no. 83/2021, of December 6, establishes that remote workers have the same rights and duties as other company employees in the same category or identical function.

As such, as long as the food allowance is included in the individual or collective employment contract, professionals working remotely are still entitled to receive it.

The food allowance is a way of ensuring that workers have access to nutritious food during their working day, regardless of where they work.

4 – Part-time workers

Article 154 of Código do Trabalho, which refers to the conditions of part-time work, establishes that part-time workers are entitled to food allowance, in the amount provided for in the individual employment contract or in a collective bargaining agreement.

If the daily working period is 5 hours or more, the employee is entitled to receive the full stipulated amount. If the normal working period is less than 5 hours, then the amount awarded is calculated in proportion to the number of hours worked.

5 – Employees of a company with a canteen or cafeteria

Companies that provide a free canteen service are exempt from paying the food allowance. This is because the employer is already ensuring that employees have access to a proper meal during their working day.