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Meal Allowance in Portugal: Card or Cash? The 2026 Tax-Free Limits
🍽️ What Is the Meal Allowance?
It’s an amount paid by the employer for each day of actual work to help cover the cost of meals.
- It’s mandatory in the public sector and in many collective agreements; otherwise, it depends on your contract.
- It’s paid only for days worked — generally not for holidays, sick leave or absences.
- It can be paid in cash (included in your payslip), on a meal card or with meal vouchers.
💶 The 2026 Tax-Free Limits
- Cash: up to €6.15 per day
- Meal card or vouchers: up to €10.46 per day
The card limit is 70% higher than the cash limit, which is linked to the meal allowance of public servants.
The same limits apply to IRS and Social Security.
🧮 What Happens Above the Limit?
The amount above the limit is treated as salary (category A income):
- Subject to IRS withholding and progressive rates
- Subject to Social Security contributions (employee and employer)
Example (22 working days):
- €10.46/day on card → €230.12 a month, all tax-free
- €10.46/day in cash → €135.30 tax-free and €94.82 taxable as salary
💳 Card vs Cash: Pros and Cons
Meal card:
- Higher tax-free limit — more net income for the same cost to the employer
- Can only be used for food (restaurants, supermarkets, food delivery), within the card’s rules
- Some cards have daily spending limits
Cash:
- Total freedom to use the money
- Lower tax-free limit — the excess is taxed
For employers, paying on a card up to €10.46 also avoids Social Security contributions on the amount above €6.15.
❓ Can You Choose?
The employer decides how to pay, sometimes in agreement with the workers or based on the collective agreement. If your employer pays in cash above €6.15, it may be worth asking about the card option.
📌 Other Points
- Self-employed people don’t receive a meal allowance; meals may be deductible as business expenses under specific rules.
- Remote work: the meal allowance is still due on remote work days if it’s paid to on-site workers in similar situations.
- Part-time: the allowance may be paid in full or proportionally, depending on the hours worked and the applicable rules.
💡 Practical Tips
- Check your payslip: the taxable part of the allowance should be shown separately.
- Getting more than €6.15 in cash? Ask your employer about the card.
- Moving jobs? Compare offers including the meal allowance and how it’s paid.
🚀 Final Considerations
The meal allowance is a small daily amount that adds up over the year. Paid on a card, up to €10.46 per day is tax-free — almost 70% more than in cash.
📢 Expert Advice: When negotiating a job offer, ask how the meal allowance is paid. On a card, the same amount can mean more money in your pocket.
Questions about your payslip or IRS in Portugal? Step Inside Portugal’s tax team can help — find out more about our tax services here. ✨
This article is for general information only and doesn’t constitute tax advice. Limits as of 2026; they’re updated periodically.
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