How much can you save with lunch benefit? Try our savings calculator!

The popularity of lunch benefit is based on enabling employees to enjoy more affordable and diverse meals. Especially during times of inflation, many may cut back on food expenses, making the savings generated by the lunch benefit even more significant. When lunch restaurants offer nutritious food, the employer-supported lunch benefit allows for more affordable dining without compromising on healthiness and taste. But how much is this savings in practice? Try our calculator and find out!

Two inexpensive ways to offer lunch benefit to employees

The employer can offer a lunch benefit in two different ways: either as a lunch deduction or on top of the salary. Both methods are also advantageous for the employer due to the tax benefit.

Lunch benefit as a lunch deduction

In the typical lunch deduction model, the employee's deductible portion of the lunch benefit remains 75%, on which the employee does not have to pay taxes. This means that by calculation, when paying with the lunch benefit, even every fifth meal is free for the employee. If the employee uses the full lunch benefit, each 1 euro they invest will give them a value of 1,33 euros at best.

The employer offers the employee a lunch benefit of 200€ per month. The employee pays for the benefit 75% x 200€ = 150€, which is deducted from his salary. The employer pays only 25% of the benefit, i.e. 50€, and can deduct this in their taxes.

Lunch benefit on top of salary

If the employer offers a lunch benefit on top of the salary, the employee only pays reduced income tax, and the savings are even greater than the lunch discount. If the average wage earner receives a full lunch benefit on top of their salary, every 1€ they invest will give them a value of 3,42€ for them.

The employer offers the employee a lunch benefit of 200€ per month. The taxable value of the benefit 0,75 x 200€ = 150€ is added to the employee's salary. At that time, the employee only pays income tax according to his personal tax rate on 150€ (e.g. 150€ x 35% = 52,50€). The employer pays the nominal value of the benefit 200€ and employer contributions for 75% (e.g. 150€ x 22,5% = 33,75€).

Hi employer, do you already offer the lunch benefit to your staff?