Daily allowances

What is the daily allowances and how it works?

The daily allowance corresponds to the financial support paid by the employer, with the aim of compensating the employee for expenses arising from business travel. These allowances are not subject to the payment of income taxes or Social Security. However, the amount of 5% will have to be paid annually as autonomous taxation.

What is food allowance and how it works?

The food allowance is an amount paid to the employee for each day worked, to compensate for the expense of the meal eaten during working hours. As a rule, the food allowance is paid monthly and refers to the number of days that each employee actually works per month, which on average is 22 days. The payment of the food allowance can be made in two ways: received together with the salary, which is limited to being exempt from taxes and social security to €6.00 per day, or separately, either by card or meal vouchers and thus is exempt from taxes and social security up to the value of €9.60 per day.