How to Include Food Vouchers in Employee Salary Slips? Seeking Practical Advice

Hi,

We have introduced food vouchers as part of compensation for employees. Could someone please suggest how the same can be reflected in the salary slip of employees?

Hi,

You can show it under reimbursement as a fringe benefit (FBT). There is a tax relaxation on food voucher reimbursement. I am attaching a sample CTC structure with all details and tax benefits. Hope this helps.

Best regards,
Partha.

I am working in the software company as an HR & operations executive. This is a startup company. I want to design a salary structure, a compensation policy, and an employee benefit policy. I have enough knowledge on this, but I still need help from somebody. I will be thankful to you if you help me in this regard. How should I go about this?

Thank you,
Sameera S

Hi Partha,

The information is really useful, but I had a doubt regarding the meal voucher. I heard that there is a limit of $1100/$1250 worth of coupons per employee per month. Is that true? Please confirm.

Thanks,
JJ

Hi JJ,

Please refer to the Finance Act of 2005. In terms of the provisions of sub-clause (II) of clause (B) of sub-section (2) of section 115WB, any expenditure on or payment made through paid vouchers that are not transferable and used only at eating joints or outlets is not liable to FBT. There is no limit to this as of now.

Hope this helps!

Thanks and regards,
Partha.

Hi Sameera,

I can contribute towards your work only if I know the company's processes and ideologies. You can send me a rough draft of your work, and I can build upon that or we can take it one step at a time, discussing any specific doubts you may have. Given that you already have a good grasp of most of it, I believe you are doing a great job.

Regards,
Partha.

Hi,
As indicated by Jayanthi, the maximum amount towards food vouchers is Rs. 1100/-
Regards,
Manoj

Hi,

How can the system of food coupons for employees be established? I have the following queries:

1. Where can we arrange these coupons?
2. Will the organization purchase the food coupons first, and then distribute them to staff members?
3. Can we obtain the acceptance of staff members to introduce the food coupons?
4. Finally, these can be issued to employees at the end of each month along with the salary.
5. Sodexo or Accor - where can we arrange them?

Could anyone clarify the process to implement the food coupons in the organization?

Please respond to my email ID [Login to view].

Anurag