Meal vouchers in Luxembourg: issuing conditions

Meal vouchers are a popular extralegal employee benefit in Luxembourg, providing a financial supplement for meals during working hours and therefore boosting the purchasing power of employees who are rewarded this benefit. Understanding the issuing conditions in Luxembourg, who qualifies for them, monetary limits, and the advantages for employees is crucial for both employers and organizations.

Who can order meal vouchers?

In Luxembourg, employers can order meal vouchers to provide as an extralegal benefit to their employees as a part of their salary package. This initiative is not just limited to large organizations; small and medium-sized enterprises or employers (SMEs) can also participate.

Meal vouchers can be issued to employees who are in a formal employment relationship in Luxembourg, including full-time and part-time workers. Every employee can get meal vouchers for a working day of at least 4 hours.

What about the issuing conditions: who has the right to receive meal vouchers?

All employees in Luxembourg have the right to receive meal vouchers, though the distribution is at the discretion of the employer. Employers may opt to provide these vouchers as part of their compensation strategy to enhance job satisfaction and attract talent. It is important to note that any employee who qualifies for meal vouchers must be working for an employer that has chosen to implement this benefit.

Issuing conditions for part-time employees

As mentioned above, any employee has the right to receive meal vouchers for any working day of at least 4 hours. This also applies to part-time employees. Meal vouchers can be prorated in Luxembourg, according to the amount of workhours performed on a full-time basis. This decision however is at the employer’s discretion.

Monetary limits

As of the latest regulations, the maximal nominal value of meal vouchers in Luxembourg is set at €15, though this amount can vary slightly based on the issuing conditions. The employer is responsible for contributing a specific portion of this value, while the employee contributes the remainder. The total amount provided in meal vouchers should not exceed a set threshold to maintain tax exemptions for both the employer and the employee.

It’s essential for employers to comply with the legal requirements concerning the monetary limits and issuing conditions in Luxembourg, as exceeding these limits can lead to tax implications.

Shortly summarized, here are some issuing conditions that need to be kept in mind:

• The employer can issue meal vouchers as an extralegal benefit to any employee who’s worked a working day of at least 4 hours. This includes part-time workers.
• Maximum amount: meal vouchers can be up to 15 euros per working day of at least 4 hours, tax free & exempt from social security contributions.
• Employer and employee contributions : Employers finance the lion’s share of the meal voucher, while employees contributes €2.80. The part accounted for by the employer is exempt from taxes and social security contributions.

Employee participation : what if I as an employer want to account for the full 15 euros ?

When the employer takes the full 15 euros into his account, the 2,80 euros – which in case of participation would be accounted for by the employee – will be taxable. The employee will therefore be taxed on that part of the meal voucher. The remainder will remain tax free.

Benefits for the employer

Employers enjoy several advantages when providing meal vouchers as part of the employee salary package:

1. Tax Benefits: Meal vouchers are exempt from taxation within certain limits, thus offering cost savings for employers. This feature allows organizations to enhance their employees’ compensation without incurring additional tax liabilities.
2. Employee satisfaction: Providing meal vouchers can improve employee morale and job satisfaction. This benefit helps employees manage their food expenses, leading to increased loyalty and productivity. You can read more on employee satisfaction and being happy at work in our blog article on the matter right here.
3. Attract and retain talent: Offering meal vouchers can be an attractive feature in job offers, giving employers a competitive edge in the labor market. This can help organizations retain their talent by making their compensation packages more appealing.
4. Flexibility: Meal vouchers can be utilized in a variety of restaurants, cafes, and food outlets, offering employees the flexibility to choose their meals according to their preferences and schedules.
5. Health and wellbeing: By encouraging employees to eat out and enjoy meals, employers can promote a healthy work-life balance, ultimately benefiting the organization through increased productivity and a healthier workforce.

Conclusion

Meal vouchers in Luxembourg present a beneficial arrangement for both employees and employers. Understanding the issuing conditions, eligibility criteria, and the monetary aspects involved can ensure that organizations maximize the advantages of this employee benefit.

As the labor market evolves, meal vouchers remain an essential tool in fostering a positive and productive workplace environment and reaching the full potential of an organization.

For more detailed information on the issuing conditions in Luxembourg, you can refer to resources such as this article or our FAQ page, which provides further insights into the management and distribution of meal vouchers in Luxembourg.