The Lunch benefit is a tax-subsidised benefit. Employers can offer the lunch benefit to their employees as a fringe benefit or as a deduction.

Fringe benefit

  • 75% of the benefit is taxable earned income according to the employee’s individual tax rate.
  • The employer pays for the benefit; the employee only pays the tax.
  • A fringe benefit paid in addition to salary also accrues pension.

Lunch deduction

  • The employee pays the taxable value of the lunch benefit, 75%; for example, the employee pays €7.50 for a €10.00 lunch voucher. The employer can deduct this amount from an employee’s salary.

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