In Romania, according to Article 11 of Law 165/2018 regarding the granting of value tickets, “Meal vouchers are value tickets granted to employees, monthly, as an individual food allowance, used only for paying for meals or purchasing food products.”
In other words, meal vouchers in Romania are coupons used to pay for food products, with beneficiaries being all employees based on an individual employment contract.
These are among the most appreciated benefits offered by employers, as they are easy to use and beneficial. Employers can provide meal vouchers in physical form or electronic format, with usage being done through a card.
It should be noted that employers in Romania cannot provide more than one meal voucher per day and cannot offer vouchers for vacation periods.
Meal vouchers can only be used in public food service units, grocery stores, canteens, buffets, or any other types of establishments that sell food products and have concluded service contracts with the issuing units of meal vouchers. These establishments must allow, exclusively, the use of vouchers for paying for meals or purchasing food products, including online payments.
Some advantages of granting meal vouchers in Romania include:
- Tax benefits – employers who provide meal vouchers are exempt from paying social taxes;
- Flexibility – meal vouchers are easy to use and serve as a motivating factor for employees;
Who receives meal vouchers in Romania?
Meal vouchers can be granted by economic units, private individuals, or legal entities from the private sector to all employees with an individual employment contract. More specifically, the people eligible for these benefits are:
- Employees
- Substitutes
- Interns
- Student interns
- Volunteers who are part of an association
To fulfill their obligations, employers have the right to offer employees meal vouchers. Once the decision to grant them is made, the employer must determine the method of distributing the meal vouchers.
Attention! If employees do not use the funds on their meal vouchers within a calendar year, the amounts will be withdrawn. Likewise, employees can use a number of meal vouchers per month that is at most equal to the number of worked days. They are required to return to the employer, at the end of each month and upon termination of the employment contract, the corresponding value of any undue meal vouchers.
Meal voucher value in Romania
The value of meal vouchers is transferred monthly to employees by the issuing unit, corresponding to the number of working days in the month for which the transfer is made, according to the contract concluded between the issuing unit and the employer.
According to Emergency Ordinance 69/2023, starting January 1, 2024, the value of a meal voucher cannot exceed 40 RON.
Thus, for a person working 20 days in a month, the total value of meal vouchers will be at most 800 RON.
It is important to mention that the electronic support of value tickets does not allow cash withdrawals or conversion into cash. Additionally, meal vouchers can only be used within Romania, within their validity period, and exclusively for purchasing the goods and services for which they were issued.
Are meal vouchers taxed in Romania?
Before 2024, all value tickets regulated by Law 165/2018 regarding the granting of value tickets, except for gift vouchers, were only subject to income tax (10%).
Through Emergency Ordinance 115/2023, the tax treatment for meal vouchers and vacation vouchers was modified. Thus, starting January 1, 2024, meal vouchers are taxed with 10% income tax and 10% health insurance contribution (CASS).
Thus, in 2024, in Romania, the taxation of meal vouchers is 10%, according to Law 165/2018, and the tax payment is strictly the responsibility of the employer.
Although they are subject to additional taxation, meal vouchers remain the best alternative for salary increases, as these vouchers are exempt from the 25% Social Insurance Contribution (CAS).
Therefore, although the granting of meal vouchers is not mandatory and remains at the employer’s discretion, they are still highly desired by most employees, as the implementation process is not complicated.
In the labor market in Romania, which is continuously evolving, these extra-salary benefits significantly influence the choice of a workplace or the retention of a job for a longer period. Tax lawyers in Romania can provide valuable guidance for employers regarding the tax implications of meal vouchers, ensuring compliance with the latest fiscal regulations while optimizing tax benefits.