Meal Allowance in Portugal 2026: Amounts, Exemption and Meal Cards

By Hugo Ribeiro, Certified Accountant · Member of the Order of Certified Accountants · HVR Business Consulting

In 2026, Portugal's meal allowance is exempt from income tax and social security up to €6.15 per working day when paid in cash and up to €10.455 per day when paid on a meal card (70% above the reference value). The limits rose in January 2026, when the public-sector value went from €6.00 to €6.15. Anything above these limits is taxed as salary. In the private sector, the allowance is only mandatory if set by the employment contract or the applicable collective agreement.

By Hugo Ribeiro, Certified Accountant OCC no. 64356 · HVR Business Consulting · August 2026

Meal allowance amounts in 2026

Payment method	Tax-free limit/day	Over 22 working days
Cash (with salary)	€6.15	€135.30/month
Meal card / voucher	€10.455	€230.01/month

The cash limit tracks the public-sector value — raised to €6.15 by the agreement signed in January 2026. The card limit follows the IRS Code: exemption up to 70% above the legal reference (€6.15 × 1.70 = €10.455). Beware of outdated articles still quoting €6.00/€10.20 — those were the limits until December 2025.

Is the meal allowance mandatory?

In the private sector it is not imposed by general law: it comes from the employment contract, internal policy or the sector's collective agreement (CCT) — and most CCTs do require it. Once granted regularly, it becomes an acquired working condition and cannot be unilaterally removed. It is paid per day actually worked — not during holidays, holiday/Christmas allowances, absences or sick leave.

Cash or card? The numbers

At the limits, the card delivers €94.71/month more, fully net, to the employee (€230.01 vs €135.30 exempt). For the employer, €1 of exempt allowance costs €1 — while €1 of salary increase costs €1.2375 (23.75% employer social security) and reaches the employee only after tax and 11% employee contributions. Over 11 working months, a card at the limit is ≈€2,530 tax-free per employee, fully deductible as a staff cost.

Run your own numbers with our net salary simulator and the hiring cost calculator.

Processing it correctly (employer checklist)

Check what the sector's collective agreement requires (minimum value and form);
Record the allowance as its own payroll item, separate from base salary;
Pay only for days actually worked;
If paying above the limit, tax the excess (IRS withholding + social security);
Report correctly in the monthly DMR return.

This is exactly the payroll work HVR runs monthly for 200+ companies — in English. See our accounting plans with payroll included or request a proposal.

Frequently asked questions

What is the meal allowance in Portugal in 2026?

There is no single mandatory amount in the private sector. The tax-free limits are €6.15/day in cash and €10.455/day on a meal card. The public sector pays €6.15/day.

Is the meal allowance mandatory for private employers?

Only if set by the employment contract, internal policy or the applicable collective agreement — which is the case in most sectors. Once granted regularly, it cannot be unilaterally withdrawn.

Is it paid during holidays?

No. It is due only for days actually worked, so it is not paid during holidays, the holiday and Christmas allowances, absences or sick leave.

What if the employer pays above the exempt limit?

The excess is taxed as employment income — subject to IRS withholding and social security contributions for both employee and employer.

Why do meal cards pay off?

Because the exemption is 70% higher than cash: €10.455/day versus €6.15/day — about €95/month more, fully net for the employee and free of employer social security.

FAQ

What is the meal allowance in Portugal in 2026?

There is no single mandatory amount in the private sector. The tax-free limits are €6.15 per day in cash and €10.455 per day on a meal card. The public sector pays €6.15 per day.

Is the meal allowance mandatory for private employers?

Only if set by the employment contract, internal policy or the applicable collective agreement — which is the case in most sectors. Once granted regularly, it cannot be unilaterally withdrawn.

Is the meal allowance paid during holidays?

No. It is due only for days actually worked, so it is not paid during holidays, the holiday and Christmas allowances, absences or sick leave.

What happens if the employer pays above the exempt limit?

The excess is taxed as employment income, subject to IRS withholding and social security contributions for both the employee and the employer.

Why do meal cards pay off?

Because the exemption is 70% higher than cash: €10.455 per day versus €6.15 — about €95 per month more, fully net for the employee and free of employer social security.