Increasing the face value of meal vouchers: a triple-win choice

Today, one of the main challenges facing employers in Luxembourg is their ability to attract talent - but above all to retain it. There are many factors involved in achieving this. The salary package on offer, as well as flexibility in work organisation, play a decisive role. With this in mind, there are a number of adjustments that can be made to improve the attractiveness of salaries while limiting costs.

Lunch vouchers, a much-appreciated benefit

'For many years now, lunch vouchers have been a highly valued employee benefit for employees and employers' , 

explains Fiorenzo Tristaino, Account Manager at Pluxee Luxembourg, the national leader in employee benefits. There are around 100,000 recipients of meal vouchers in Luxembourg, representing around 20% of the working population. "These amounts are tax-exempt. They are not taxed and can therefore be fully spent by the employee," continues Fiorenzo Tristaino. For the employer, these amounts are not subject to employer contributions. So it's an excellent way of optimising salary packages and rewarding teams.

Up to 12.20 euros tax-free per lunch voucher

Since 1 January 2024, employers have been able to further boost their employees' purchasing power.urs collaborateurs. 

"Until then, the amount exempted was capped at 8 euros per lunch voucher. This threshold is now set at 12.20 euros. By increasing the face value of the lunch vouchers granted, employers can considerably increase the satisfaction of their employees".

explains Hamid Touil, Sales Manager at Pluxee Luxembourg. "However, many executives have not yet explored this opportunity, which is particularly interesting for those who want to improve their attractiveness or retain their teams without implementing a traditional salary increase.

Why increase the face value of lunch vouchers?

There are a number of advantages to doing this:

• The additional amount granted is not taxable;
• The employer increases the daily spending capacity of its employees;
• The employee's purchasing power is directly boosted and you enable them to consume better by buying local products and more balanced meals, for example;
• It's concrete support for the local economy, by encouraging consumption from local businesses.

More than 900 euros per year and 75 euros of expenses per day

Let's take the example of an employer who decides to increase the face value of meal vouchers from 10.80 euros (old ceiling) to 15 euros (new ceiling), an increase of almost 40%. For a full-time employee, this could represent an annual increase of more than 900 euros, exempt from tax and employers' contributions.

In addition, the legislator authorises the use of 5 lunch vouchers per day. By increasing the face value, the daily spending capacity increases from €54 (5 x €10.80) to €75 (5 x €15).

It is important to note that the employee contribution of €2.80 per meal voucher remains unchanged, regardless of the face value set by the employer. This stability allows employees to benefit from increased purchasing power without any additional impact on their personal contribution.

Meal vouchers are also a highly flexible tool. Employers are free to set the face value of the vouchers according to their ability. "They don't have to reach the €15 ceiling. They can choose 12, 13 or 14 euros, depending on their salary policy," continues Hamid Touil. However, we find that many managers are still unaware of the possibility of benefiting from an exemption above €10.80. Yet this is a unique opportunity to optimise costs while increasing the commitment of teams.

And many other advantages...

Thanks to the digital tools offered by Pluxee, it is now very easy to adjust the face value of lunch vouchers. When ordering online, the manager can freely choose the desired amount.

"Thanks to Pluxee, employees have access to a whole range of benefits. With their payment card or their virtual card on their smartphone, they can use their lunch vouchers in the largest network of retailers in the country. They also benefit from exclusive advantages, promotions at partner stores and a wide range of exceptional events."

adds Hamid Touil.

For every employee, Pluxee opens up a world of opportunities to discover on a daily basis.

Would you like to offer lunch vouchers to your employees, or are you thinking of increasing their face value? Our advisers will be happy to help you. Contact us for more information.

Hamid TOUIL, Sales Manager & Fiorenzo TRISTAINO, Account Manager at Pluxee Luxembourg