A meal subsidy is a non-cash benefit employers give their employees to support meal costs during work hours. The goal is to reduce the cost of meals eaten either during work or during the lunch break. This subsidy can be provided in various ways, such as meal vouchers, canteen subsidies, or a digital meal card.

How does a meal subsidy work?

There are various ways employers can implement meal subsidies:

1. Direct canteen subsidy: companies with their own canteen can subsidize meal costs by reducing the canteen price for employees. Your employees then pay only a smaller amount, while the company covers the rest.
2. Canteen subsidies: if a company doesn't have its own canteen, it can partner with external restaurants or canteens. Employees receive a voucher or a direct discount for meals at these restaurants. Another option is mobile or digital canteens, through which you can order food for your team.
3. Digital meal cards: with digitalization, digital cards or apps for managing meal subsidies have become increasingly popular. These work similarly to a prepaid card, loaded with a set amount each month that employees can use for meals. These cards can often be used at various partners, such as restaurants, bakeries, or supermarkets.
4. Meal vouchers: meal vouchers (physical or digital) are one of the most common forms of meal subsidy. These vouchers can be redeemed at restaurants or supermarkets. The employer provides employees with a set number of vouchers, which can be used to purchase meals.

Tax aspects

In many countries, a meal subsidy is tax-free up to a certain amount, or at least tax-advantaged. For example, employers can claim the meal subsidy as a business expense, while employees benefit from a lower tax burden, since the subsidy is often not counted, or only partially counted, as income.

In Germany, meal subsidies for employees are tax-advantaged, but there are set limits up to which they can be tax-free or taxed at a flat rate. These tax-free allowances are adjusted annually. The meal subsidy is divided into two areas: meals in a company canteen and meal vouchers or digital meal cards used outside the company.

More on this from the Federal Ministry of Finance

Advantages of a meal subsidy

Employees benefit financially, since they reduce their spending on meals. A meal subsidy often also encourages healthier eating.

For employers, a meal subsidy is an attractive additional benefit that motivates employees, strengthens loyalty, and can increase job satisfaction. It can also be part of a comprehensive employee retention program.

Overall, the meal subsidy is a popular, often tax-advantaged benefit that's beneficial for both employers and employees.

Using a meal subsidy for employee catering in heykantine!

In heycater's mobile canteen, employers can flexibly set meal subsidies, whether as a fixed daily amount, a percentage, or a maximum amount. Employees order their desired dishes directly through the app and see the subsidy amount with every order.

If you'd like to regularly order freshly prepared meals for your team at the office, heykantine! is a modern, tailored solution for you. Get advice now and get to know heykantine!