Increasing the value of the public service meal allowance to $5.20 will increase the value of the IRS-free allowance to $8.32 when paid by card or voucher.
The IRS code considers the meal allowance as income from dependent work. “in the part in which it exceeds the established legal limit or in which it exceeds 60% when the respective subsidy is awarded through meal vouchers” or card.
“In that sense, the value of the meal allowance is excluded from taxation under the aforementioned conditions”an official source from the Ministry of Finance told Lusa.
Taking into account the amount of 4.77 euros currently paid to civil servants, this is the amount of the monetary subsidy that is exempt from IRS, excluding what is paid with a card limited to 7.63 euros per day .
As the government has already announced, as part of the salary negotiations with the civil servants’ unions, the meal allowance paid in cash to these employees will be increased to EUR 5.20 from January, thus reducing the exempt amount paid by card. turn increases to 8.32 euros.
Source: DN
