The daily value of the meal allowance is the same on the receipt, but the way it is paid can make a real difference to the IRS at the end of the month. In 2026, with the update of the Public Service food allowance to 6.15 euros per day, the fiscal impact of this choice becomes even more relevant for thousands of workers. Receiving in cash or by card is not indifferent, and this detail could be costing you money every month without you realizing it.
According to Notícias ao Minuto, the IRS Code provides for different exemption limits depending on whether the meal allowance is paid in cash, together with the salary, or via a meal card. The difference translates directly into the net amount received.
Two payment methods, two tax regimes
The meal allowance can be paid in two ways. The most traditional is payment in cash, included in the salary slip. The alternative is to use a meal card, normally accepted in participating restaurants, cafes and supermarkets.
When the subsidy is paid in cash, the IRS exemption is limited to the amount defined for Public Administration workers. In 2026, this level is 6.15 euros per day. Anything exceeding this amount is considered income subject to IRS.
In the case of payment by meal card, the tax regime is more favorable. In these cases, the IRS exemption extends up to 70 percent above the Civil Service reference value, raising the daily exemption limit to 10,455 euros.
Because the card pays off more in tax terms
The difference results from a rule set out in the IRS Code, which provides for a more advantageous tax treatment for meal subsidies granted through vouchers or cards. The update of the exemption limit is automatic and follows the increase in the public service food allowance.
As explained by , with the reference value set at 6.15 euros in 2026, the exemption ceiling for the meal card rises from 10.20 to 10.455 euros per day. Only the part that exceeds this amount is subject to IRS.
An example helps you understand the impact
Imagine a worker who receives a daily meal allowance of 11 euros.
If this amount is paid in cash, only 6.15 euros are exempt from IRS. The remaining 4.85 euros are taxed.
If the same 11 euros are paid via meal card, the exemption covers up to 10,455 euros. In this scenario, the worker only pays IRS on 0.545 euros.
Over the course of a month of work, this difference can translate into several tens of euros more in net income, without the gross value of the benefit changing.
The limitations of the meal card
Despite the tax advantage, the meal card is not exempt from restrictions. The amount cannot be withdrawn in cash or transferred to a bank account and its use is limited to participating establishments.
According to the same publication, this limitation explains why some workers continue to prefer payment in cash, even knowing that this option is less tax efficient.
Who decides the payment method
The choice of payment method for the meal allowance is, as a general rule, up to the employer, unless there is a different regime provided for in a contract or collective regulation instrument.
Still, with the new exemption limit in force in 2026, card payments clearly become more advantageous from a tax point of view for the majority of workers.
In short, the daily amount of the subsidy may be the same, but the way you receive it makes a difference to the IRS. In many cases, this detail is costing money every month.
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