What is the Meal Allowance?
The meal allowance offered by employers to employees compensates for daily meal costs on days worked. It may be paid in cash or through a meal card/voucher.
Reference Values for 2026
For tax purposes in 2026, the daily reference value for meal allowance paid in cash is €6.15.
For meal card payments, the daily tax-free threshold increases to €10.46.
Tax Exemption Rules
In Portugal, the meal allowance is exempt from income tax (IRS) and social security contributions when it does not exceed the legal limits:
- Cash payment: exempt up to €6.15 per working day.
- Meal card: exempt up to €10.46 per working day.
These thresholds apply only to days worked.
Implications for Employees and Employers
Receiving meal allowance via meal card can be more beneficial for employees due to the higher tax-exempt ceiling. Employers and payroll team must ensure compliance with legal thresholds to optimize tax outcomes and avoid additional liabilities.
Conclusion
In 2026, meal allowance remains a significant part of total compensation in Portugal, with updated tax-free limits that favour meal card payments. Employees, employers and chartered accountants alike should stay informed of these rules for effective payroll and HR practices.
How Nominaurea Can Help
Nominaurea has extensive experience in labour, tax and human resources consultancy and can help to:
✅ Correctly interpret and apply the rules on meal allowances in 2026;
✅ Set up remuneration and benefits policies in compliance with the Portuguese Labour Code and tax legislation.
✅ Optimise payroll processes, meal cards and tax-efficient benefits;
✅ Provide support in collective bargaining and the review of collective labour agreements.
