Meal subsidy from the boss – 100 euros more on the account – and without a salary increase

The supervisor is not always in a giving mood, often the economic situation does not allow for a salary increase. However, there are other options thanks to which you can get more net from your gross.

The meal allowance is a practical benefit as you effectively save on your expenses. Under the right conditions, this even works tax-free. We will show you what you have to be aware of.

How does the meal allowance from the employer work?

First, it is important to know that you are an employee no legal claim have on the food subsidy. It is a voluntary additional benefit provided by the employer, unless it is explicitly stated in the employment contract.

If you can convince your boss of the idea, you will need to come up with a side agreement detailing the frequency per month and the amount of the subsidy. The employer does not have to prove the days of absence either if a maximum of 15 grants per month be granted. So this is a good guideline.

The following rules are also important:

• Subsidies may only be granted on actual working days
• it only applies to meals that are suitable for direct consumption
• not permitted on business trips, as there are expenses here
• no subsidy for alcohol, tobacco and the like

Food subsidy: This is the maximum you can get

The basis for the calculation is the official benefit-in-kind values, which are redefined every year on the basis of consumer prices. From 2023 these will look like this:

• Breakfast: 2.00 euros
• Lunch / dinner: 3.80 euros

This is the mandatory portion, which the employer pays tax at 25 percent. On top of that there is the tax-free employer subsidy, which amounts to 3.10 euros in both cases. The maximum sum per day is therefore:

• Breakfast: 5.10 euros
• Lunch / dinner: 6.90 euros

So at 15 days you could be over 100 euros per month save, provided your boss plays along. If not, there is another option that will cost the company less.

Get a tax-free meal allowance: Complicated calculation

Thanks to digital solutions like Lunchit, it is possible to reduce the tax burden. The calculation for this is a bit cumbersome, as is so often the case in Germany. See the table above for an overview.

• If the employer pays 25 percent tax on the mandatory portion of the 3.80 euros, that amounts to 0.95 euros.
• If the employee pays more than 6.90 euros for lunch, the additional contribution is credited to the taxable portion and the employer’s tax burden decreases.

That means: From a value of 10.70 euros, the meal subsidy is for the company tax free .