Understanding Sodexo Passes: How Do They Work for Employee Benefits and Tax Savings?

Hi,

I am working as an HR in a software company. The total strength of employees is 15. We are planning to go for Sodexo Pass (meal) for the employees. I have heard that it is a tax benefit to employees and no FBT to the employer. But I would like to know how the Sodexo voucher amount is calculated, on what basis? Does it depend on the designation or salary of the employee? Are Sodexo Passes given to permanent/probationary employees, etc.? If we give Sodexo Pass under salary, it will be a tax benefit, but if we provide Sodexo Pass excluding salary, then it will be considered as perks to employees. We would like to go for both as it will be a tax benefit and perks to employees to motivate them.

Kindly guide me.

Regards,
Kala

Email: kala@transpacific.in

Kala,

Sodexo meal coupons are definitely a tax-saving reimbursement for employees as well as employers. As per statutory provisions, "Food and beverages provided through non-transferable food coupons (to anyone) are excluded from 'hospitality' and exempt from FBT."

You can calculate the amount by evaluating the salary structure and the percentage reimbursement of the gross salary you are providing to your employees at various levels. For example, the bottom-grade reimbursement for meals may be Rs. 15 per day, and so on.

Hi,

Instead of a Sodexo pass, which is paper-based, why don't you consider electronic alternatives like the Axis Bank Meal Card or the HDFC Food Plus Card?

Regards,
Vartica

Hi,

Can you please explain it more? Like, how can we go for these in terms of usage and benefits? Looking forward to your reply.

Hi,

We in our organization have planned to select an employee every month as the "Employee of the Month" and to give a gift such as a ticket, coupon, or card. Could anyone please tell me if there are any other attractive cards or coupons available other than Sodexo?

Priya

Hi,

Lots of banks offer gift cards. You can buy them and load them with whatever denomination you want. HDFC and many other banks have these.

Thanks,
Regards,
Vartica

Thank you for the information. Also, I would like to know if there is a minimum limit for Sodexo coupons. If there is, could you please inform me of the minimum amount required for a Sodexo Coupon?

Thank you in advance.
Priya

Shiva,

Sodexo pass is a reimbursement in the form of food coupons provided by the employer to the employee to meet his/her food expenses, and it is not taxable. Most companies offer these food coupons to employees as part of their CTC to save on taxes. There is no specific limit on Sodexo pass amounts, but it is advisable to specify a reasonable daily amount, such as Rs. 50 per day (50*22=1100,75*22=1650) or Rs. 75 per day. Just because it is a tax-free component, it is not advisable to provide coupons of exorbitant value or something unreasonable.

Thanks,
Geetanjali

Hi Mohanpriya,

The minimum amount starts at Rs. 10 (e.g., 10, 15, 50, 75, etc.).

Regards,
Deepa

Hi All, can anyone help me with more details on Food Plus cards? We are a software company with 50+ employees offshore in Hyderabad.

Regards,
Srikanth Aptude Software Solutions.

Sodexo Meal Pass Benefits and Calculation

Sodexo Meal Pass is given as a meal/food benefit to employees. You can provide up to Rs 50 per meal, which translates to Rs 100-Rs 135 per day multiplied by the number of working days in a month, say 22. Hence, you can offer a Sodexo pass worth Rs 135 x 22 per month to employees irrespective of grade. However, if you want to maintain some hierarchy, you can start with Rs 100 at grade 1 and go up to Rs 135 at higher levels.

Thanks