UncategorizedJune 26, 2023

Fresh lunch vouchers reform!

On 9th June, the Government disclosed the outlines of the reform on lunch vouchers applications in Luxembourg. The new rules will become effective on 1st January 2024.

Here is an overview of those upcoming changes:

The 1st main one introduces the digital vouchers as the norm, which employees can spend with a specific payment card. This would mean for employers still distributing paper vouchers, that the last ones would be ordered for December 2023, and that, as from January 2024, they would have to switch to the card. We expect the reform to provide more practical details on its implementation. Paper lunch vouchers can still be used during the whole year 2024.

The 2nd change increases the maximum exemption value of one lunch voucher.

Let’s have a look at the current status first: up to a voucher’s face value of €10.80, the employee’s contribution remains €2.80 per voucher, either deducted from the net salary or taxed as a benefit in kind via payroll, if the employer decides to bear the cost of the total face value of €10.80

As of 2024, the Employee’s contribution of €2.80 per voucher will remain valid for voucher’s face value up to €15.

To change or not the face value of their lunch vouchers remains an employer’s decision though.

Last but not least, the reform will also limit the use of vouchers. Where currently employees can buy nearly anything with their lunch vouchers, the conditions of use will be limited to restaurants and purchases of food only, with a maximum of 5 vouchers to be spent per day. We understand that this limit will apply regardless of the face value of the vouchers.