If an organization offers you meal cards worth a certain amount instead of adding that amount in your salary, what would be your initial response?
Perhaps, you will be apprehensive. After all, salary is all that counts, right?
Well, not exactly. Meal cards have benefits that go beyond the usual meal accessibility.
Meal cards have been in vogue for many years. They are definitely an excellent way to offer meal allowance on a card platform. They function as an innovative tax saving tool that an employer can give to its employees.
There are several benefits of a meal card for the employees. Let’s take a look at why meal cards are worth trying for you as an employee.
With the use of these cards, you can save up to thirty percent in taxes. Consider this for a case. Your organization offers electronic meal vouchers worth INR 2000 every month. This amount of INR 2000 is taxation free, i.e., you do not have to pay any tax for this amount. On the other hand, if this amount gets credited to your account as salary every month, it will be counted under your taxable income leading to tax deductions. You will end up getting only a 70- 90 percent of this amount of INR 2000. This makes the concept of meal cards indispensable as they help you reduce your taxable income.
Ease of Use
They are very easy to use, and that’s why an increasing number of companies are opting for them. Some of the meal card providers also offer app-based meal vouchers which make payments even easier.
Easy To Manage
Since these meal cards are not in the form or paper vouchers, it means that you don’t have to carry bulky paper booklets that often get misplaced.
The meal cards are accepted widely across many fine dining restaurants, food courts, bakeries, and grocery stores. As they are also accepted online, you can use them for online meal purchases. In fact, some of the meal cards are accepted in lakhs of outlets giving a variety to choose from. For instance, a type of meal card by Zeta is accepted in more than 11 lakh outlets.
Alerts on Usage
When you use this card, you get an alert on your mobile about expenditures. In this way tracking expenses and account balance is just a few clicks away.
You may face trouble while using a meal card. What do you do in that case? You call the support network and that should suffice. Most of the meal card providers have customer contact center or live chat support, where you can get in touch with a representative if you face any issues.
With so many benefits and ease of usage, these meal cards are employee-friendly. It means that you have something which you can use in many outlets, make purchases online and still don’t have to worry too much about extravagance because you anyway have to spend that amount every month.
Verdict: Opting for meal cards instead of getting the amount added in your salary is definitely worth a shot.