The amount of savings depends on how your employer provides you the lunch benefit.
The employer can offer a lunch benefit in two different ways: either as a lunch discount or paid on top of the salary. Both methods are also beneficial for the employer due to the tax benefit.
Lunch benefit as a lunch discount
In the typical lunch discount 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.
For example, 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 their 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.
For example, 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).
Try our lunch benefit calculator here, so you can see how much you save yourself!