Meal Voucher Reform: In Force Imminently

The revamp of meal vouchers in Luxembourg will have major repercussions for businesses. The aim is to modernise the meal voucher scheme and make it more effective for both employees and employers.

The main purpose of meal vouchers is to enable employees to eat during their lunch break. To take advantage of the tax exemption, two conditions in particular must be satisfied:

• the business does not have a staff canteen; and
  
• (ii) the employee does not receive a flat-rate reimbursement of work expenses in the form of a daily allowance.

Meal vouchers are a widespread and popular benefit, as they are exempt from tax under certain conditions. However, with inflation, the digitalisation of society and changing market practice, it became clear that the meal voucher scheme was no longer meeting its objectives and the time had come to modernise its use and make it more efficient.