Tax-free meal allowances are a popular way for employers to support their staff without incurring additional tax or social security contributions. In 2025, there are updated maximum limits that employers should be aware of. In this blog post, we explain what the tax-free meal allowance is, what the limits are for 2025, and how companies can use it effectively.

What is the tax-free meal allowance?

The tax-free meal allowance is a benefit that employers can provide to support their employees' workplace meals. It is based on the provisions of the Income Tax Act (Section 8 (2) sentence 11 EStG) and is often structured as a non-cash benefit or a tax-advantaged subsidy. The allowance remains free of tax and social security contributions up to a specified maximum amount.

The goal of this subsidy is to reduce employees' meal costs while strengthening the bond between employer and staff. Especially in times of rising living costs, such benefits are highly attractive to employees.

What are the maximum limits for 2025?

The amounts for tax-free meal allowances are based on the official non-cash benefit values for meals, which are adjusted annually by the Federal Ministry of Finance .

Starting in 2025, there will be a slight increase in these maximum limits:

• For lunch or dinner: 4.40 euros (2024: 4.13 euros)
• For breakfast: 2.30 euros (2024: 2.17 euros)
• This corresponds to a value of 11.10 euros per working day for full board (2024: 10.43 euros).

This adjustment accounts for rising inflation and increasing food costs, ensuring that the meal allowance remains an attractive option for both employers and employees.

How can employers implement the meal allowance?

There are numerous ways for employers to offer tax-free meal allowances. The choice of method depends on the company structure, employee preferences, and technical capabilities. The most common options:

Company canteen

One of the most classic and popular options is using a company canteen. Employers can provide meals directly on-site and subsidize the costs for employees. This form of meal allowance is particularly convenient, as billing is usually handled directly by the company and no further steps are required from the employees.

Meal vouchers

Meal vouchers are a flexible alternative if there is no company canteen. Companies can issue vouchers up to the tax-free maximum amount, which employees can then redeem at restaurants or supermarkets.

Digital apps and platforms

In recent years, digital platforms and apps have gained popularity. Providers allow companies to offer meal allowances flexibly and easily via a smartphone app. Employees simply upload their meal receipts, and the employer reimburses the amount within tax-deductible limits.

Partnerships with local restaurants

Another option is collaborating with local restaurants and cafés. Companies can make special arrangements where employees receive discounted or free meals at participating restaurants. This form of meal allowance can also support the local hospitality industry.

Allowances for remote workers

With the rise of remote work, the question of how employers can provide meal allowances in this context has become relevant. Vouchers and apps are particularly well-suited for this, as they are flexible and benefit employees even when working from home.

Benefits of the tax-free meal allowance

The meal allowance offers numerous advantages for both employers and employees:

Benefits for employers:

• Increased employee satisfaction: Additional support with food costs is highly valued by most employees.
• Attractive benefit in the competition for talent: Especially in industries with a shortage of skilled workers, the meal allowance can be a decisive advantage.
• Tax relief: These subsidies are tax-free, thereby reducing non-wage labor costs.

Benefits for employees:

• Cost savings: The subsidy helps reduce daily meal expenses.
• Flexibility: Through digital solutions or vouchers, employees have many ways to use the subsidy.
• Tax-free status: The meal subsidy is not considered taxable income.

The meal subsidy remains an attractive benefit

The tax-free meal subsidy remains a valuable tool in 2025 for supporting employees and maintaining your appeal as an employer. The adjustment of the maximum amounts to 11.10 for full board reflects the rising cost of living and continues to offer companies a tax-efficient way to provide added value to their staff.

With various options such as company canteens, meal vouchers, or digital apps, companies can tailor the meal subsidy to their specific structures and the needs of their employees. In any case, it is worth utilizing this option to increase employee satisfaction while taking advantage of tax benefits.

One way to use the meal subsidy is with heykantine! from heycater! Employees choose their meals via the online canteen. Employers can set the subsidy in the app, making it easy to support their staff with healthy, delicious meals. Feel free to contact our team for a no-obligation consultation about heykantine!