Conditions for Allocating Meal Vouchers in Luxembourg: What You Need to Know
In Luxembourg, meal vouchers represent a significant salary benefit for employees. These vouchers allow recipients to pay for meals or purchase food items at a wide range of establishments.
It is important for everyone to understand the eligibility criteria to benefit from these vouchers. That’s why today, we will detail the general conditions for allocating meal vouchers in Luxembourg and everything you need to know to make good use of them.
Basic Conditions for Allocating Meal Vouchers
Employment Contract
To be eligible for meal vouchers, employees must be bound to their employer by a formal employment contract. This contractual basis ensures that both the employer and the employee adhere to clear agreements regarding work performance, remuneration (including social benefits such as meal vouchers), and the hierarchical relationship.
Note: Self-employed individuals can also benefit from meal vouchers. Indeed, any company can offer meal vouchers starting from one employee, even when the manager is the only employee, as long as there is a payroll record.
Working Hours and Internal Company Policies
The decision to allocate meal vouchers is at the employer’s discretion. Legally, employees who have worked a minimum of 4 hours in a day may be entitled to a meal voucher for that day.
For employers who grant meal vouchers, eligibility may be conditioned by the number of hours worked, often prorated to the number of hours worked compared to a full-time schedule. Generally, only employees who meet a minimum number of working hours per week or month benefit from this advantage, but the minimum can vary depending on the company’s internal policies.
The company’s internal policy on the allocation of meal vouchers may also include criteria such as the duration of the probationary period or the category of the job held.
Agreement with a Meal Voucher Provider
To offer meal vouchers, a company must enter into an agreement with a voucher provider such as Up. The details of this agreement can determine the terms of meal voucher allocation to employees as well as the amount, since the maximum value of these vouchers increased from €10.80 to €15 on January 1, 2024.
Tax Legislation and Maximum Meal Voucher Amount
Luxembourg tax legislation plays a crucial role in the distribution of meal vouchers. Meal vouchers are tax-exempt, provided, among other conditions, that they do not exceed the amount of €15.
Although the employer’s contribution has increased to a maximum of €12.20, the employee’s contribution of €2.80 remains unchanged. This contribution can be made in two ways: either the employee pays their contribution to the employer, making the benefit tax-exempt, or the amount of €2.80 is considered a benefit in kind and is, in this case, taxable.
Advantages of Meal Vouchers in Luxembourg
For Employees
Meal vouchers are a valued salary benefit for nearly one in five employees in Luxembourg, and for good reason:
- They increase employees’ purchasing power by allowing them to pay for meals or groceries.
- Meal vouchers are flexible in use as they can be used in various places, including restaurants and supermarkets.
- They promote healthy eating.
For Employers
For employers, meal vouchers are an integral part of the salary packages they offer because they:
- Help attract and retain talent. A company offering meal vouchers is more attractive to potential employees and retains existing employees who appreciate the benefit.
- Provide tax advantages for employers, reducing the overall cost of this benefit and thus the payroll cost.
- Are easy to manage with the help of a meal voucher provider.
How to Implement Meal Vouchers ?
An employer aiming to implement meal vouchers for their employees only needs to follow a few simple steps:
- Choose a meal voucher provider after comparing different offers.
- Negotiate the terms of the agreement to ensure all parties are satisfied with the conditions.
- Inform employees about the availability of meal vouchers and how to use them.
Conclusion
Meal vouchers are an important component of remuneration packages in Luxembourg, offering tangible benefits to both employees and companies. To benefit from them, employees must meet certain conditions set by their employer and the prevailing legislation, such as a minimum number of hours worked or the completion of a probationary period.
For employers, meal vouchers are a tool that allows them to reduce their payroll costs while ensuring they attract and retain the best talent.
With the help of a service provider like Up, meal vouchers are an easy-to-manage and highly advantageous HR tool.