Is your office offering meal youchers? Here's why it should
What's the story
Meal vouchers are a popular employee benefit in India, offered by employers to their employees as a perk.
These vouchers, issued in the form of prepaid cards or coupons, are widely accepted at various restaurants, food outlets, and supermarkets.
They help employees save on everyday expenses and provide tax benefits for both employers and employees. Read on to know more about how meal vouchers work and their advantages.
Tax benefits
Tax savings for employees
Meal vouchers are highly tax-exempted under the Income Tax Act of India.
An employee can get meal vouchers worth ₹2,200 per month tax-free.
So, if an employee utilizes these vouchers to buy food items, they can save up to ₹26,400 in taxes every year.
This benefit is only applicable if the vouchers are used specifically for purchasing food and non-alcoholic beverages.
Ease of use
Convenience and flexibility
One of the biggest benefits of meal vouchers is the convenience they offer. Say goodbye to the hassle of carrying cash or dealing with change when purchasing meals or groceries.
Most meal voucher companies have tie-ups with thousands of restaurants, cafes, and supermarkets across India, guaranteeing plenty of choices for employees.
Plus, digital meal vouchers can be easily managed via mobile apps, further enhancing their user-friendliness.
Cost-effective solution
Employer benefits
For employers, providing meal vouchers is a financially savvy way to bolster their benefits package.
Because these vouchers are tax-free up to a certain limit, companies can offer this advantage without bearing extra tax burdens.
Plus, it streamlines the whole employee benefit management process by delegating it to expert providers who take care of everything from voucher distribution to redemption.
Promoting well-being
Healthier eating options
Meal vouchers can be a powerful tool to nudge employees toward healthier food choices.
By partnering with outlets that offer balanced meals, these vouchers can contribute to improving employees' overall health and well-being.
Plus, having access to nutritious food options during breaks can lead to a notable increase in productivity at work, further highlighting the strong connection between proper nutrition and job performance.
Financial planning
Budget management
Employees can better manage their monthly food budget by using meal vouchers.
By setting aside a fixed amount each month for meals and groceries through these vouchers, they ensure that they have a clear understanding of their spending patterns on food items.
This not only helps in better financial planning but also leads to savings over time.