The secretary-general of Fesap stated on Wednesday that the Government conceded the possibility of increasing the meal subsidy as early as 2026, although no specific amount was disclosed following a meeting with the Secretary of State for Public Administration. What exactly is the meal subsidy, and who is eligible to receive it?
The meal subsidy is intended to compensate meal expenses incurred during working days, but it is not part of the Labor Code, meaning its payment is not mandatory.
“This benefit is not obligatory and can, in certain cases, be replaced by the provision of meals by the employer (for instance, in educational institutions or companies with their own canteen),” explains DECO Proteste.
According to the consumer protection organization, the meal subsidy is “a daily allowance directly linked to actual work performed.”
“It is not included in subsidies and is not paid in cases of justified absences with loss of remuneration,” DECO Proteste further explains.

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Who is entitled to the meal subsidy?
The blog Salto of Santander clarifies that “all public sector employees are entitled, as its value is defined in the State Budget.”
“Private sector workers have the right, provided it is included in their individual or sector collective labor contracts,” it explains.
How is the meal subsidy calculated? “Typically, it is the company that sets the daily amount, but this detail should be in the individual or collective labor contract. To calculate your monthly amount, multiply the daily rate by 22 (the usual number of working days per month). For instance, if you receive €7.63 per day, you will receive €167.86 at the end of the month. Note that this amount may vary depending on the number of days worked. For example, there is no pay during holidays or unjustified absences,” the same site states.
DECO PROteste, in turn, explains that “there are no mandatory minimum or maximum amounts for this salary supplement in any private company,” with the public sector rate set in the State Budget.
In April of this year, the meal subsidy for state workers increased from 5.20 euros to six euros.
According to the Government, this increase also led to a rise in the tax-exempt threshold to the same value, resulting in a tax relief of 132 million euros for private sector workers.
“Since May 1, 2023, the public sector meal subsidy increased to six euros, now being the maximum ceiling for IRS exemption when paid in cash. If paid in vouchers or cards, the meal subsidy is tax-free up to 9.60 euros. This difference is stipulated in the IRS Code, applying a 60% increase to the subsidy paid by card compared to cash,” explains Doutor Finanças.
Is the meal subsidy paid during vacations?
“Typically, no. This amount is paid for each working day, excluding holidays, public holidays, absences, or other non-working days,” the same portal explains.

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