A food allowance is an employee benefit offered by employers more and more often. It has definitely gained popularity in recent years. Until now, the amount of meals provided by the employer was exempt from contributions up to PLN 300 per month. From September 1, 2023, the exemption amount will be increased again to PLN 450 per month.

Importantly, the new regulations will change not only the amount subject to exemption from ZUS contributions, but also the method of subsidizing meals by the employer enabling its application. It should be remembered that co-financing for meals  for employees are exempt from ZUS contributions, but not from tax.

A food allowance is an employee benefit offered by employers more and more often. It has definitely gained popularity in recent years. Until now, the amount of meals provided by the employer was exempt from contributions up to PLN 300 per month. From September 1, 2023, the amount of the exemption will be increased again.

The Regulation of the Minister of Family and Social Policy of August 9, 2023 on detailed rules for determining the basis for calculating contributions for retirement and disability insurance (published on August 22, 2023, Journal of Laws, item 1665), which introduces a new limit, was published in the Journal of Laws. the amounts subject to exemption from the payment of ZUS contributions, which the employer may apply from subsidies for meals provided to its employees. For almost 20 years, these amounts have been frozen at the level of PLN 190 (paragraph 2 section 1 item 11 of the Regulation of the Minister of Labour and Social Policy of 18 December 1998 on detailed rules for determining the basis for calculating contributions for pension and disability insurance of the Contribution Regulation; Journal .U. 2023 item 728). The first increase in March 2022 increased this amount to PLN 300. The new regulation introduces an updated rate subject to exemption from ZUS contributions at a level not exceeding PLN 450 per month. As indicated by the Ministry of Family and Social Policy, the reason for increasing the amount of subsidizing food is the need to make the said amounts more realistic.

Importantly, the new regulations will change not only the amount subject to exemption from ZUS contributions, but also the method of subsidizing meals by the employer enabling its application. So far, the lack of specific rules in this regard has raised many doubts as to the application of the above exemption in practice, which was confirmed by numerous cases of the Social Insurance Institution questioning the applied exemption.

According to the published Regulation, subsidies to food granted in the form of:

• meals made available to employees for consumption (financed by the employer);
• coupons, vouchers, meal vouchers and prepaid cards provided to employees, which entitle to purchase only a meal or processed food products suitable for direct consumption in catering establishments (i.e. eg restaurants, bars, canteens or other catering outlets).

It should be remembered that the co-financing for meals for employees is exempt from ZUS contributions up to a certain limit, but this does not apply to tax advance, which must be collected in full from the amount transferred to the employee.