Meal Cards for Employees: The Smart Way to Manage Daily Expenses

Food prices in Ireland have increased by over 3% in the past year, according to the latest data from the Central Statistics Office (CSO). For employees, this means higher daily meal costs. For employers, this presents a meaningful opportunity to provide employees with meal cards to ease this financial burden.

As more companies are exploring practical, tax-efficient ways to reward employees, corporate meal cards are gaining popularity as a smart way to support employees in their daily expenses while keeping them motivated at work. In this article, let's look at what meal cards are and how it is helpful for businesses.

What Are Meal Cards For Employees?

Meal Cards are prepaid cards that an individual can use to purchase a meal from a restaurant or order groceries online. It is issued by companies to employees as a benefit to manage their daily food expenses.

These cards are prepaid and can be configured to be used only in selected spending categories like restaurants, groceries, or non-alcoholic beverages, ensuring they are used as intended. Unlike meal vouchers or paper vouchers, meal cards offer employees greater control.

Employees can choose to spend these meal cards anywhere around the world. Whether it is a local supermarket, a fancy cafe, on Amazon, or even food delivery platforms. This flexibility gives them the freedom to choose how they spend their food allowance.

How Does Prepaid Corporate Meal Card Work?

A prepaid corporate meal card is pre-loaded with funds and acts as a digital wallet for food expenses. With providers like CleverCards, the process of managing and issuing these cards is entirely digital.

CleverCards also allows employers to configure spend categories and spend limits. Here's how it works:

1. Employers first set up their CleverCards account and log into their business portal, where they can issue CleverCards to their employees.

2. The CleverCards employee benefit card is then sent to each employee via email.

3. Employees can instantly activate the card and add it to their Google Pay or Apple Pay to pay in-store using contactless, or they can use online

4. Employees can track their spending through the CleverCards to always know their available balance.

Benefits Of Meal Cards For Employer & Employee

Meal cards aren't just a 'nice to have' perk anymore; they are becoming a practical necessity. With the average cost of a meal in Ireland reaching nearly €18 and food prices continuing to rise, employees are increasingly looking for support in managing these expenses.

At the same time, for employers, meal cards are not just a nice gesture, but also a smart and tax-efficient way to reward employees. Here are the key benefits of meal cards for both employees and employers:

For Employees:

Financial Relief: Employees want to be rewarded, and what better way to reward them than taking their financial burden off? Meal cards ensure that they not only feel appreciated but also use their rewards to make the most of them.

No Reimbursements: Nearly 47% of employees struggle with delays in reimbursements. With digital meal cards, employees do not have to file claims with the admin or HR team and wait for reimbursements. They can spend and see the balance on the go.

Flexibility: Meal vouchers are often limited to being used online. While meal cards can be used both online and in-store, they offer employees the flexibility to use them at restaurants or delivery stores.

For Employers:

Tax-efficient: Under the small benefit exemption scheme, employers can provide a non-cash benefit of €1,500 per employee per annum that is tax-free. Making these cards a non-taxable benefit.

Easy Tracking: HR or Admins can easily track the issuance and spending of employees from a central dashboard online. This reduces manual workload and increases efficiency.

Tax Treatment Of Meal Cards In Ireland

Revenue provides specific guidelines on how employee benefits can be considered tax-free. These include:

1. Non-cash Benefit: The benefit must not be in cash or convertible into cash. Meal cards must be strictly used for food-related purchases and cannot be exchanged for money.

2. Spend Limit: Employers can provide up to 5 non-cash benefits or a cumulative benefit of €1,500. If the benefit value exceeds the full value is subject to tax.

3. Bought by Employer: The benefit must be bought by the employer. This means employees cannot pay for meals themselves and claim reimbursement later.

Final Thoughts

Meal cards strike the perfect balance between meaningful employee rewards and tax compliance. Whether you're leading a growing team or simply looking to offer everyday support, prepaid meal cards provide a smart, hassle-free way to take care of your employees.

Want to learn how you can get meal cards for your business? Fill out the form below, and our team will reach out to you