Meal allowance in Portugal: what is tax-free and what is taxed in 2026

What the meal allowance is

The meal allowance (called subsídio de refeição in the private sector and subsídio de alimentação in the public sector) is an amount paid to the worker for each working day to help with meals. In most cases it is not required by law, but it is set out in almost every collective agreement and is standard practice in companies.

The big advantage of the meal allowance is fiscal: up to a daily limit, it is exempt from IRS and Social Security¹. Unlike normal salary, that amount reaches the worker in full. Only what goes above the limit counts as income and is taxed.

The exempt limit in 2026: cash or card

The exemption limit depends on the payment method. In 2026 the values are¹²:

The €6.15 value is the public-administration meal allowance, set by Portaria n.º 51-B/2026/1, effective 1 January 2026². When the allowance is paid through a meal card or voucher, IRS law increases the limit by 70%¹:

Card limit = €6.15 × 1.70 = €10.455 per day

That is why most companies pay the allowance on a meal card (such as Coverflex, Pluxee or Edenred): it lets them give the worker more tax-free.

Anything above the limit is taxed

The part of the daily allowance that goes above the limit stops being exempt and counts as employment income¹:

• it enters IRS as category A income (dependent work), at your rate;
• it enters the Social Security base, with 11% paid by the employee and 23.75% by the employer³.

For example, a €12-a-day allowance paid by card exceeds the €10.455 limit by €1.545 a day. Only that excess is taxed; the first €10.455 stay exempt.

The meal allowance calculator splits these two parts and applies the 11% Social Security on the excess. The IRS on that part depends on your bracket, so it is explained but not computed.

Worked example

Take a €12 daily allowance, paid by card, over 22 working days:

• Exempt limit (card): €10.455 a day.
• Exempt part: €10.455 × 22 = €230.01.
• Taxed part (excess): (12 − 10.455) × 22 = €1.545 × 22 = €33.99.
• Monthly total: €12 × 22 = €264.
• Social Security (11%) on the excess: €33.99 × 11% = €3.74.
• Net (excluding the IRS on the excess): 264 − 3.74 = €260.26.

If the same value were paid in cash, the limit would be only €6.15 and far more would be taxed. Run the numbers with your own figures in the meal allowance calculator.

Cash or card: why the payment method matters

For the same daily value, the card is always better, because the exempt limit is 70% higher. See the difference for an €11-a-day allowance:

On a card, almost the whole allowance is exempt; in cash, more than €4 a day enters IRS and Social Security. For the worker, paid by card, the value arrives almost in full.

Which days it is paid

The meal allowance is paid only for each actual working day. It is not paid on weekends, holidays, bank holidays or absences (unless the collective agreement says otherwise). That is why the monthly total is not based on 30 days, but on the working days in the month, on average, around 22.

What this guide does not cover

To keep the estimate honest, the following are left out:

• The IRS on the taxed part, which depends on your income bracket and family situation.
• Meals provided in kind (a company canteen), which have their own rule.
• Any higher limits set out in a specific collective agreement.

After seeing the exempt part, find out how your pay translates into take-home with the net salary calculator and read how net salary is calculated. When in doubt, always check your payslip.