Meal allowance: Optimize employee care

The meal allowance is a tax-free payment in kind from the employer to staff in Germany and serves to cover the additional costs incurred by the employee as a result of professionally initiated work abroad. It is firmly anchored in income tax legislation and can make a significant contribution to employee motivation. In addition, it can also significantly strengthen the local economy by increasing the purchasing power of employees in local shops and restaurants. It is important that employers understand the importance of the meal allowance and how they can use it efficiently for their employees and to support the local economy. This guide will dive deeper into this topic and address the practical implementation and possible future prospects of the food allowance in modern corporate structures.

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How can the meal allowance optimize employee benefits and create tax benefits?

The implementation of a meal allowance is a strategic tool for companies to efficiently care for employees on business trips. It serves to compensate for the additional food costs that arise when employees have to eat outside their usual environment. By using the legally defined, tax-free lump sums, companies can not only significantly reduce the administrative workload for travel expense reporting, but also increase their attractiveness as an employer. Since the reimbursement of lump sums is tax-free and social security contributions for the company and the receiving employees, there is a financial advantage for both sides. This mechanism relieves employees of the need to collect and submit every single meal receipt, which leads to higher employee satisfaction.

The strategic use of the food allowance goes beyond mere reimbursement of costs. It is a sign of the employer's appreciation and care. When companies proactively offer these lump sums instead of referring employees to the option of claiming them as advertising costs in the private tax return, this is perceived as a positive signal. Simplifying processes through lump sum billing also frees up valuable resources in the HR and finance department. Instead of carrying out complex document checks, billing can be standardized and automated. This results in faster reimbursement of costs to employees and sustainably improves internal efficiency.

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What exactly is a meal allowance and who is entitled to it?

The meal allowance, also known as additional catering expenses or expenses, is a legally defined, tax-free amount that employers can reimburse their employees for catering costs during a work-related absence. All employees who carry out a professionally initiated foreign activity, i.e. work outside their first place of activity and their private home, are eligible.

The legal basis for these lump sums is found in the German Income Tax Act, specifically in Section 9 (4a) EStG. Because employees on business trips typically have higher costs for meals than at home or at regular work, the lump sum is intended to compensate for this additional expenditure without bureaucracy [Handelsblatt, Finance Editor]. It is not necessary to prove the actual costs with supporting documents; the length of absence is the sole criterion for the amount of the claim. If the employer does not or only partially reimburse the lump sum, employees have the option to claim the amount as advertising costs in their income tax return and thus reduce their tax burden. [Finanztip e.V.]

An important limitation is the so-called three-month period. The tax-free payment of the food allowance is limited to the first three months of uninterrupted activity at the same foreign location. After this period has elapsed, the legislator assumes that the employee has adapted to the new situation and that the location will become a new regular place of activity, which will eliminate the right to the tax-free lump sum.

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What are the lump sums for 2025 in Germany and how are they calculated?

The lump sums, which have remained unchanged since 2020, apply to business trips within Germany in 2025 as well. If you are absent for more than eight hours, you will receive a small flat rate of 14 euros, while if you are absent for 24 hours, you will be charged a large flat rate of 28 euros. These amounts are relevant for arrival and departure days as well as for full intermediate days. Despite political discussions about an adjustment to higher food prices, the flat rates for 2024 and 2025 were not increased [TravelPerk]. The calculation is based exclusively on the length of absence from the first place of activity and home on the respective calendar day. The exact rates are clearly defined to ensure easy and consistent application.

Meal packages for domestic trips in Germany 2025

For example, if a business trip starts on Monday and ends on Wednesday, the calculation is as follows: For the day of arrival (Monday) and the day of departure (Wednesday), the flat rate of 14 euros is set, provided that the absence on these days was more than eight hours. The lump sum of 28 euros is granted for the full interim day (Tuesday). In total, the claim for this three-day trip would be €14 + €28 + €14 = €56. There is a special arrangement for professional drivers, who can receive an additional 9 euros per day when staying overnight in a vehicle. [Wikipedia article “Additional food expenses”]

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How do meals provided by the employer affect the lump sum?

If, during a business trip, meals are provided free of charge by the employer or by a third party at his instigation, the meal allowance must be reduced. This regulation prevents double tax funding, as the employee did not have any costs of their own for the meal in question. The reduction is based on fixed percentage rates, which relate to the large daily flat rate of 28 euros. For breakfast provided, 20% (equivalent to 5.60 euros) is deducted from the package for the respective day. For lunch or dinner, the reduction is 40% (equivalent to 11.20 euros). This reduction is made even if the employee does not make use of the meal offered for personal reasons. [HR Works] If the calculated lump sum falls to zero or a negative value as a result of the reductions, the refund for that day is set to zero euros.

Reduction of the meal allowance for provided meals (basis: 28€)

A practical example illustrates the application: An employee is on a business trip for a full day (claim: 28€). The hotel room, which was booked by the employer, includes breakfast. In the evening, a business partner invites you to dinner, whose costs are covered by the company. In this case, the flat rate of 28 euros will be reduced by 5.60 euros for breakfast and 11.20 euros for dinner. The remaining tax-free payout amount for this day is therefore 28€ - 5.60€ - 11.20€ = 11.20€. [VLH (Vereinigte Lohnsteuerhilfe e.V.)]

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What regulations apply to business trips abroad?

Special, country-specific meal packages apply for business trips abroad. Since the costs of living and, in particular, the prices for food vary significantly worldwide, the Federal Ministry of Finance (BMF) sets an updated list of foreign lump sums every year. These amounts are often significantly higher or lower than the German rates in order to take account of the real circumstances in the respective travel destination.

The official list is published in a BMF letter and is the binding basis for the tax-free refund. [Federal Ministry of Finance] As with domestic trips, there are two rates for each country: a flat rate for full 24-hour days and a lower flat rate for arrival and departure days and for one-day stays of more than eight hours. When traveling through several countries in one day, the location that the employee last reached before midnight is decisive for calculating the flat rate. The Chambers of Industry and Commerce also provide these lists to make it easier for companies to use them. [Chamber of Industry and Commerce (IHK) Stuttgart Region]

• Logic of adjustment: The flat rates are adjusted because food costs in Switzerland, for example, are significantly higher than in Germany, while they can be significantly lower in other countries.
• Find the sentences: Companies should always refer to the latest BMF letter in order to use the correct flat rates for the respective country and year.
• Reductions: The reduction rules for meals provided by the employer (20% for breakfast, 40% for lunch/dinner) also apply to international flat rates, with the percentages relating to the respective 24-hour international package.

What alternatives to the food package are there for companies?

Although the meal allowance is an efficient method, there are alternatives that can be beneficial depending on the company structure and objectives. The most common alternatives include reimbursement of actual costs upon presentation of documents and granting benefits in kind, such as a digital meal allowance, which is not limited to business trips.

At the Reimbursement of actual costs employees submit all food receipts, which are then reimbursed by the company. This approach is precise, but requires significantly more administrative work by checking each individual document for appropriateness and tax compliance. On the other hand, there is Meal allowance in kind. Employees receive a daily subsidy for meals, which is tax-free and social security contributions up to a certain official benefit in kind. For 2025, the monthly benefit in kind for meals rises to 333 euros (11.10 euros per day) [Spesenfuchs.de]. This benefit can also be granted on working days in the office or working from home and thus increases daily employer attractiveness.

Comparison: Meal allowance vs. alternatives

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Frequently asked questions about the meal allowance

Does an employer have to pay the meal allowance?

No, there is no legal obligation for employers to refund the meal allowance. It is a voluntary service. If the company does not pay, employees can claim the lump sums due to them as advertising costs in their income tax return and thus reduce their tax burden. [Circula GmbH]

What is the three-month period for the meal allowance?

The tax-free refund of the food allowance is limited to the first three months of continuous professional activity at the same place of activity abroad. After expiry of this period, the town is regarded as the new first place of activity for tax purposes, which is why the claim to the tax-free lump sum expires.

Can self-employed people and freelancers also use the meal allowance?

Yes, self-employed people, freelancers and businesses can also set the food allowance for their business trips. They deduct the corresponding lump sums from their income as operating expenses, which effectively reduces their taxable profit and thus the tax burden.

Does the meal allowance also apply to working days spent working from home?

No, the meal allowance is intended exclusively for professional activities abroad. Since working from home takes place at home and not at an external place of activity, there is no entitlement to additional food costs. However, alternative benefits such as the meal allowance can take effect here.