The food allowance is one of the supports most valued by Portuguese workers, but not everyone is entitled to receive it. Despite being part of the monthly remuneration in many companies, its attribution is not mandatory by law and always depends on the sector of activity and what is defined in the contract or collective bargaining agreement.
In Public Administration, the value of the meal allowance is set at 6.00 euros per day, in accordance with Ordinance No. 107-A/2023, of April 18, which took effect on January 1, 2023. This value serves as a reference for the private sector, although each company can define a different amount or even choose not to pay it, according to the specialized economics portal Ekonomista.
In accordance with article 2, no. 3, subparagraph b), subparagraph 2) of the IRS Code and article 46, no. 2, subparagraph l) of the Social Security Contributory Regimes Code, the food allowance is exempt from IRS and Social Security contributions up to certain limits:
- 6.00 euros per day, when paid in cash;
- 10.20 euros per day, when paid by meal card or meal voucher.
These limits were updated by the State Budget Law for 2025 (Law No. 45-A/2024, of December 31), which increased the increase applicable to the meal card to 70%. Above these values, the excess becomes taxed.
Non-mandatory subsidy in the private sector
Unlike the Christmas allowance or the holiday allowance, the food allowance is not required by law. The Labor Code (CT) does not enshrine it as a universal right, being considered a social benefit granted at the initiative of the employer.
In the private sector, the worker is only entitled to this subsidy if this is provided for in the individual employment contract or in a collective regulatory instrument (such as a collective contract or company agreement). If it is not included in any of these documents, the employer is not obliged to grant it.
Payment only for actual working days
The food allowance has a compensatory nature, intended to cover the expense of the daily meal, normally lunch, and is therefore only due on days in which the worker actually provides service, according to the source previously cited.
As a general rule, it is not paid during holidays or on days of absence, unless the employment contract or collective agreement establishes otherwise. This understanding is aligned with article 260 of the CT, which defines what is or is not part of remuneration.
Part-time work regime
In part-time employment contracts, the principle of proportionality set out in articles 150 to 156 of the CT applies. Therefore, if the worker performs duties for at least five hours a day, the value of the benefit must be the same as that of full-time colleagues. If the daily working period is shorter, the amount is proportional to the hours worked, unless there is a contractual or collective provision to the contrary.
Teleworking and right to subsidy
With the entry into force of Law No. 83/2021, of December 6, which changed the teleworking regime, it was clarified in article 169 of the CT that remote workers maintain the same rights and duties as in-person colleagues.
This means that, if the food allowance is paid to in-person workers, it must also be paid to those who are teleworking, regardless of where they perform their duties, according to the same source.
Meal card: advantages and operation
The food allowance can be paid in cash or via meal card, an increasingly common option in Portuguese companies. The main advantage of the card is tax: the maximum value exempt from taxation is higher (10.20 euros per day), which allows the benefit to be increased without increasing tax or contribution charges.
In the case of the meal card, it works like a prepaid card, charged monthly by the employer with the defined amount. The unused balance accumulates for the following month, and the worker does not need to have an account with the issuing bank, nor does he pay annual fees or maintenance costs.
Practical example of taxation
A worker who receives 8.00 euros per day in cash must pay tax on 2.00 euros, as this exceeds the exemption limit (6.00 euros). If the same amount is paid on a meal card, it is completely exempt, as it does not exceed the limit of 10.20 euros per day, the same source also states.
Always check the contract
Finally, it is essential that each worker confirms what is stated in their employment contract. Food allowance is not a universal right, and many people wrongly assume that it is.
If the contract does not include it, the worker can negotiate its inclusion with the employer, says . Although it is not a legal obligation, the food subsidy is a widespread practice in most Portuguese companies and represents an important supplement to monthly income, with clear tax benefits for both workers and employers.
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