Amendment to the Labour Code: New Rules on Employer Meal Contributions

Date: 02 May 2023

On 26 October 2021 Parliament adopted an amendment to the Labour Code intended to place meal vouchers and cash meal allowances on an equal tax footing, allowing the employee to choose between the two. The amendment is proposed to take effect on 1 January 2022.

Meal vouchers and cash meal allowances will be taxexempt up to 55% of the per diem meal allowance (currently a maximum of EUR 2.81). Employer contributions from the social fund are to remain unchanged and will not be subject to taxation. Provision of meal vouchers or cash meal allowances must be made in advance.

Selfemployed persons will be able to include an amount of up to EUR 2.81 per day worked as taxdeductible expenses; however, they will no longer be required to document expenses incurred for the purchase of food or meal vouchers.

The tax equalisation of meal vouchers and cash meal allowances introduced by the amendment comes at the cost of lowering the exemption limit for tax and social contributions in the case of meal vouchers or meals provided to employees on the employer’s premises. The amendment does not remove the administrative burden on employers associated with the obligation to provide meal contributions in advance.