Meal vouchers: Definition, how to use, benefits & more
Discover everything about meal vouchers: their definition, benefits, how to use them effectively, and more to make the most of this convenient employee perk.
Till the last decade, the meal cards were prepaid, magnetic stripe PIN-based, reloadable, and rupee-denominated for food and nonalcoholic drinks at merchant locations connected to the meal card company. However, with technology soaring in the last 10 years or so, companies like Pluxee offer flexible, seamless, and convenient digital meal cards to cater to the diverse workforce needs.
Now, meal vouchers and cards have become a go-to method for employees to get nutritious and free meals, and employers to keep their employees happy with this must-have benefit.
Let’s delve deeper into the use of meal vouchers and what benefits they provide to both employers and employees.
What are meal vouchers?
Meal vouchers are an integral part of employee benefits that offer financial perks to employees during work hours. These vouchers are typically provided as a part of an organisation’s benefits package to help employees save money on food expenses. These vouchers are accepted by merchants across the country. This includes restaurants, meal canteens, bakeries, online food aggregators (like Zomato, Swiggy, Faasos, EatClub, UberEats, Dunzo, and more), street vendors, and supermarkets.
Did you know? The global meal vouchers and employee benefits solutions market size is anticipated to be valued at USD 407.04 billion by 2032. |
The primary purpose of a meal card is to enhance employee satisfaction and well-being, and ensure they continue being an integral part of the organisation.
Some common types of meal vouchers include:
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Physical meal vouchers: These are traditional paper-based vouchers that can be redeemed at merchant stores.
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Meal cards: These cards are similar to credit cards, which can be preloaded by an employer and used by employees to purchase meals or nonalcoholic drinks.
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Digital meal vouchers: These digital cards or vouchers are the most advanced version of meal benefits, and they can be integrated into mobile apps or wallets.
Related reading: https://www.pluxee.in/blog/sodexo-meal-pass-the-preferred-meal-benefit-of-employees/
How do meal vouchers work?
Meal vouchers are in place to simplify food-related expenses for employees while providing employers with a chance to keep their employees happy and satisfied. Here is an explanation of how they work:
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Issuance: Employers provide meal vouchers to employees as a part of their benefits package or as a reward for a job well done. These cards are issued to employees in the form of either a physical card or equivalent money added to their wallet, which can be used to make food-related purchases.
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Activation: Digital meal vouchers can be activated through an app (such as the Pluxee India app), enabling employees to access their balance and transaction history easily.
If you need information on how to active a Pluxee meal card, visit here- https://www.pluxee.in/products/meal-benefits/
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Usage: Employees can use the meal vouchers to pay for food and nonalcoholic beverages at merchant restaurants, cafeterias, online stores, and more.
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Payment: If using a physical coupon, then employees can hand them over at the time of sale. If using an online app or physical card, employees can scan a QR code or swipe the card to make a purchase. The amount will automatically be deducted from their balance.
These meal vouchers for employees are highly versatile and allow them to buy food online as well as offline, offering convenience and peace of mind during grueling work hours.
Benefits of meal vouchers for employers and employees
The meal card benefits are vast, and they offer a win-win situation for both employers and employees. Let’s explore what these benefits are:
For employers
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Improved employee morale and satisfaction: Employees who have access to benefits such as food card allowance are more satisfied and productive at the workplace. This helps the organisation in retaining talented employees and create a happy working environment.
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Cost-effective corporate benefit: Meal vouchers are a great way to keep employees happy without straining the budget too much, making it a high-ROI benefit. They can also be used as thoughtful corporate gifts for employees during special occasions, festive seasons, and employee appreciation events.
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Easy distribution via digital platforms: With brands like Pluxee in the market that offer easy distribution via their app (Pluxee India), employers do not have to worry about the hassle of physical coupons or cards.
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Strengthens employer branding: When employers provide meal vouchers to their employees, it helps create a positive image in the market and showcases how they care about their employees' health and well-being. It is always a good idea to have a positive positioning in the market to retain and attract new talent and create a joyful working culture.
For employees
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Tax savings: Meal vouchers help employees save on taxes as they are often exempted from their taxable income up to a certain amount (more on this later). This makes meal vouchers a smart benefit that adds extra value to their salary package.
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Wide acceptance: With meal vouchers being accepted across thousands of restaurants, grocery stores, aggregator platforms, and more, they offer unmatched convenience to employees.
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Easy tracking of expenses: With apps like Pluxee India, it is easier than ever for employees to track their spending, manage transactions, and check balances effortlessly. This promotes transparency and ease of use.
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Encourages better financial management: Tracking expenses and having an allotted amount of money to spend on food-related expenses on a daily basis allows employees to manage their finances more efficiently.
Did you know? 38% of young employees (aged 18-24 years) consider free or subsidised meals as the most attractive benefit. |
How meal vouchers drive employee engagement
Employee engagement is one of the most important pillars that determine the success of any organisation. Especially in the last few years in the post-COVID era, it has become more important than ever for employers to invest in employee engagement and satisfaction.
Meal vouchers, often though underestimated, are a great way for employers to ensure their employees' nutritional needs are met.
Imagine you are an employee at a leading firm, going through meeting after meeting, trying to put our fires all morning, and ensuring things run smoothly. You are a loyal and efficient employee of the organisation and are always eager to work to the best of your ability.
Then comes lunchtime, and all you want to do is have a scrumptious, nutritious lunch with your team and enjoy their company. Now, having access to a meal voucher helps here. All you have to do is go to your office canteen (given it comes under the merchant list of your card/voucher) or just place an online order through any popular app like Zomato/Swiggy. You enjoy food at your convenience and get a free meal out of it. This definitely would brighten your day and make working extra hard worth it.
Now, the same goes for other benefits like fuel reimbursement, digital gift cards, telecom, rewards, and more. All these benefits are there in place to ensure employees feel valued at the workplace and it boosts their morale.
Summing up
Benefits like meal vouchers, health & wellness perks, and digital gift cards are a must-have today in the modern workplace. They reflect a company’s commitment to well-being and satisfaction. As businesses shift more towards a hybrid model, these benefits will be an integral part of every organisation that wants to ensure their employees get what really matters to them and makes them happy.
For employees, these meal vouchers provide them with a chance for team bonding and collaboration. From group lunches to shared coffee breaks, they create opportunities for employees to connect with each other.
Frequently asked questions (FAQs)
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What is a meal voucher in a company?
A meal voucher (also known as a food voucher or meal coupon) is a form of prepaid voucher typically provided by employers to their employees as part of their benefits package or as a reward for a job well done. These vouchers can be used by employees to purchase food and nonalcoholic beverages at merchant stores.
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What is the allowance for food vouchers?
Meal vouchers are non-taxable up to ₹50 every meal, or ₹2,200 per month for a 22-day work cycle, according to Indian tax regulations. Any sum over this threshold is subject to income tax for the employee.
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Can Pluxee meal vouchers be used online?
Yes, Pluxee meal vouchers can be used for online transactions at supported food delivery apps and supermarket platforms, offering flexibility for employees.
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Can employers customise Pluxee meal vouchers?
Absolutely. Pluxee meal vouchers can be customised as per an organisation’s needs and preferences.
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