NEW MEAL ALLOWANCE AMOUNTS FOR DOMESTIC BUSINESS TRIPS

In June 2024, the Ministry of Labour, Social Affairs and Family of the Slovak Republic published preliminary information on the increase in the meal allowance for domestic business trips. This step will also affect other figures. Let us take a look at what changes lie ahead and when we can expect them to take effect.

CURRENT MEAL ALLOWANCE RULES

The meal allowance amounts last changed in October 2023. The mechanism for increasing the meal allowance amounts is laid down in Section 8(1) of the Travel Allowances Act. An increase takes place if the difference between the cumulative price index for the relevant calendar month and the base value reaches at least 5%.

In April 2024, the monthly cumulative price index for food and non-alcoholic beverages in restaurant catering reached 105.3, which represents an increase of 5.3%. This condition has been met, and the meal allowance amounts will therefore increase.

PROPOSED MEAL ALLOWANCE AMOUNTS FOR DOMESTIC BUSINESS TRIPS IN 2024

According to the preliminary information, the proposed meal allowance amounts will change as follows:

MAXIMUM EMPLOYER MEAL ALLOWANCE FOR EMPLOYEES

Under the Labour Code, the employer provides a meal allowance of at least 55% of the price of the meal, but no more than 55% of the meal allowance paid for a business trip lasting 5–12 hours. The proposed increase would mean a rise in the maximum employer meal allowance from €4.29 to €4.57.

MINIMUM VALUE OF A MEAL VOUCHER

Employers that provide meal vouchers must ensure that their value is at least 75% of the meal allowance for a business trip lasting 5–12 hours. With the proposed amount of €8.30, the minimum value of a meal voucher would rise to €6.23. The minimum meal allowance provided in cash should rise to €3.43 (55% of €6.23).

MEAL EXPENSES OF AN ENTREPRENEUR (SZČO)

Self-employed persons (SZČO) may also include a meal allowance in their expenses, at 55% of the meal allowance for a business trip lasting 5 to 12 hours. After the proposed increase, self-employed persons could claim €4.57 per day worked as an expense.

WHEN WILL THE NEW AMOUNTS TAKE EFFECT?

The increased meal allowance amounts will be laid down by the Ministry of Labour, Social Affairs and Family of the Slovak Republic in a measure published in the Collection of Laws of the Slovak Republic. These amounts will take effect from the first day of the calendar month following the month of publication. It is expected that the new meal allowance amounts could take effect from 1 August 2024 or 1 September 2024.

UPDATE AS AT 26 JUNE 2024: THE DRAFT MEASURE ON MEAL ALLOWANCE AMOUNTS HAS BEEN SUBMITTED FOR THE INTER-MINISTERIAL COMMENTING PROCEDURE, AND ITS EFFECTIVE DATE HAS BEEN SET AT 1 SEPTEMBER 2024.

PLANNED CHANGES FROM 1 JANUARY 2025

A bill is also going through the legislative process that should amend several provisions of the Travel Allowances Act with the aim of making the business environment more predictable. It is proposed that the ministry should merely announce the allowance amounts in the Collection of Laws of the Slovak Republic, and that the changes should take effect predictably, three months after the conditions for their increase have been met.

This change would ensure that if, for example, the price index for April 2025 rose by at least 5%, the new allowance amounts would take effect from 1 July 2025.

These planned changes aim to increase the transparency and predictability of the legislative process, which should make planning and preparation easier for employers and employees alike.