How do Meal Allowances work in Brazil?

In Brazil, meal allowances are a common benefit provided to employees, typically through a system known as the Vale Refeição (VR) card. This card functions similarly to a credit card but is exclusively used for dining expenses, offering employees a convenient and cashless way to pay for their meals.


How the VR Card Works

The VR card is designed to simplify meal transactions for employees. Here’s a breakdown of how it operates:

  • Monthly Top-Up: Each month, the VR card is replenished with the allowance amount before the start of the new month. This ensures that employees have adequate funds for their meals during workdays.
  • Tax-Free Benefit: The VR card is not considered taxable income, meaning it does not impact the employee’s taxable earnings.
  • Restricted Usage: The card can only be used at designated food establishments, including restaurants, cafeterias, and cafes, aligning with its purpose of covering meal costs.


Payment and Processing

  • Mandatory Allowance: Our company adheres to the minimum mandatory meal allowance of R$21.80 per working day, as outlined in our Collective Bargaining Agreement (CBA). This amount may vary slightly each year based on new resolutions or adjustments to the CBA.
  • Card Activation: It typically takes a few days for the VR card to be processed and activated after an employee starts. Once issued, the card is topped up monthly with the agreed allowance, becoming available at the beginning of each new month.


Additional Meal Compensation

If the company wishes to offer a higher meal allowance than the mandatory VR amount, this can be included as part of the employee’s overall compensation package. However, it is important to note:

  • Tax Implications: Any additional meal allowance provided beyond the mandatory VR amount would be treated as part of the employee’s salary. Consequently, this extra allowance would be subject to taxation like regular income.


Important Notes

  • Fixed Allowance: The amount allocated on the VR card cannot be individually adjusted.
  • Usage Restrictions: The VR card is strictly for meal expenses, ensuring that funds are used for their intended purpose.


This system of meal allowances helps employees manage their dining expenses efficiently while providing a tax-efficient benefit. For any additional questions or clarifications, please refer to our HR department.

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