Exploring Employee Benefits: How to Offer Sodexo Passes and Alternatives in Mumbai?

Hi there,

We are planning to provide Sodexo passes to employees as part of their salary. I would like to gather more information regarding this matter:

1. Which other service providers in Mumbai offer similar vouchers to Sodexo?
2. What is the maximum limit of vouchers we can provide to each employee?
3. Are there any industry-specific conditions that we need to consider?

We operate in the KPO and risk solution management industry with a standard 5-day working week. Could you please advise on the maximum amount of vouchers we can offer to our employees?

Regards,
Jayshree

Hi Jayshree,

Could you please explain the terms and conditions in detail? I have heard that we can give up to Rs. 2600/-, but I need more clarification on the same.

Thank you.

My company gives up to 1000 per month in Bangalore. However, it's 950 for the employees who are working in the HYD branch.

Regards,

Dixita

Hi Sri,

My company also uses Sodexo Pass, but the amount of privilege varies according to the employee's salary. For example, if an employee draws a salary of Rs. 11,000, we give him Sodexo Pass privilege for Rs. 2,000 so he can benefit from income tax. Employees earning below Rs. 10,000 receive Sodexo Pass valued at Rs. 1,500. In short, the privilege of Sodexo Pass is provided based on salary to enable employees to benefit from income tax.

Hi Jayashree,

You can opt for a Sodexo card instead of coupons because coupons have to be counted every time the employee uses them. The Sodexo card functions like a debit or credit card, which can be swiped like any other debit or credit card. There is no worry about validity, and this card can be recharged from time to time. The balance can also be checked online, making it very user-friendly compared to other cards.

Accor also issues ticket restaurants, but they do not offer a card. In this market, Sodexo holds an 80% share, while the rest belongs to Accor.

Thank you.

Hi,

In my organization, we used to calculate Rs. 50/- for each working day in terms of Sodexhos. A few months back, one of the employees from the Sodexhos department explained that the government has implemented a policy setting the rate at Rs. 75/- for each working day in terms of Sodexho.

Employees whose salary was below Rs. 10,000 were not eligible for any amount of Sodexhos. This policy was followed in our organization.

Regards,
Rekha

Hi,

Thank you for all your responses. My query remains the same - what are the government rules for issuing Sodexo vouchers? There must be some limit based on salary, designation, etc. Please help me with this query.

Regards,
Jayshree

Hi,

As per the income tax rules, if a company provides food, it is not taxable. The provision of food passes is based on this clause. According to the rules, a company can provide a maximum of Rs. 13,200/- worth of food passes per annum. Up to this amount, it is tax-free for the employee. Any amount exceeding this is taxable.

Each company will provide food passes based on this criteria. However, if your company chooses to provide more, you can do so, but the employee will not receive additional benefits.

Suneel. 😀

Hi,

The limit has been increased from Rs. 40 to 75/- (per day) last year. Hence, you can issue food coupons up to 2000/- per month, which shall not be taxable.

Venkatesh

Hi Vankatesh,

Can you provide any evidence/circular to support the details you provided.

Suneel.

Hi,

My company provides Sodexo passes with a maximum limit of Rs. 60,000 per annum. Employees also receive tax benefits for the entire amount.

Thanks,
Sowmya

Jaysree,

Sodexo or Accor, or any other food coupons you give, doesn't matter. To my knowledge, tax exemption is on 15K per annum, and that's why people ask for Food Coupons. If I am not wrong, there has been a slight increment in recent days. I don't know the exact amount, but I think tax exemption is now at 24K. If it is 15K, then you can give 1250/- per month, and at 24K, it is 2000/-.

Correct me if I am wrong.

Thanks,
Mirza
Manager HR
Hyderabad

Hi all,

I got my query answered, and I am uploading the details to you. As per government rules, they have given Rs. 75 per day, but still, a few companies are using Rs. 50. If any corporation can also give Rs. 100 per day, and if we consider a total of 26 working days, then we can maximum give up to Rs. 2600. However, a few corporations are also issuing more than that. As per the recent FBT law, the government has removed the maximum limit to issue meal voucher passes. So, corporations can issue as per employees' salary and at their own risk, but the maximum limit suggested by accountants and other professionals is Rs. 2600.

Regards,
Jayshree

Hi Madhumita,

Are you sure that Sodexo offers a card that can be used outside of shops, like your credit and debit card? They have offered us a smart card that was only meant for cafeteria usage. I would like to know more about this as managing paper vouchers is a cumbersome process.

Cheers,
Anand

Hi All,

I know every person is saying that the food pass allowed per day is 75/100, but we do not have any concrete proof of it. As per income tax rules, the amount allowed per day is only Rs.50/-. If any person has proof of the increase in the amount, please let all of us know. Forward the notification from the Income Tax Department about the raise in the limit from 50 to whatever the amount.

Thanks and regards,

The best thing you can do is to contact a representative from Sodexo Pass to get more detailed and valid information regarding their services. This way, you will not be misled by other information because I know that Sodexo Pass offers different services in different areas. Additionally, you need to understand that there are limitations on the possible accredited establishments where Sodexo Pass can be used.

Hi All,

The cap of Rs. 50/- was removed a couple of years ago in the Budget. When there is no cap, the company may give a reasonable amount of food vouchers to its employees. The amount of "reasonableness" is something that is not clear. Use prudential discretion.

Regards,
Vishwanath

Hi...

My company gives Rs. 2500/- pm Ticket Restaurant Vouchers in Mumbai

1. Accor is only competitor of Sodexho in India. They are been into Indian market since last 10 years with more than 2000 corporate customer includes like TCS, Reliance, Wipro, E-fund, Hexaware and more…

2. Accor Meal Vouchers are under the brand name of “Ticket Restaurant Meal Vouchers” in India accepted at more than 1800 shops in Mumbai.

3. As per the Pre – FBT provision there was maximum of Rs. 50/- per day meal allowance can given by employer to his employee through meal vouchers.

But in Post – FBT the rule pertaining to valuation of free meal has been deleted and therefore now there is no ceiling on the amount of expenditure towards the meal allowance through paid vouchers as per the section 115 WB Income Tax Act 1961.

4. I suggest you can give Rs.125/- towards meal allowance through meal vouchers which comes Rs. 2500/- pm. according to 5 working days.

I know on of the Accor Representative who can help you for giving more clarification. I am enclosing his details for your reference.

Mr. Pednekar

Accor Services

Cell No. 9819966505

Hi!

Can you explain the term Sodexo pass? Can we benefit from tax also? If "YES," then what's the limit?

Minimum and maximum slab of Sodexo, waiting for your prompt response.

Thanks,
Soma

Hi Soma,

Sodexo Pass is the name of the food coupon company. They provide food passes, which are given as a part of CTC (Food Allowance) for employees. There is a tax benefit on this for both the company and the employee.

For employees - until last year, a tax benefit of a maximum of 15K per year was allowed. Now, the upper limit has been removed.

For the company - until last year, there was FBT, but now FBT has been removed. So, it is up to the Finance department to decide how much to give. The passes can be used in hotels, shopping malls, etc., for the purchase of food and food items. (FBT - Fringe Benefit Tax)

Regards,
Suneel.

As per government ruling for Sodexo passes, it is calculated as Rs. 100 for every working day in a month. For example, if a month has 30 days and there are 5 working days, then the total working days in the month are 22. So, for 22 working days at a maximum of Rs. 100 per day, the total is Rs. 2200.

This rule applies across all levels and designations. Any amount beyond this is subject to tax deduction.

Hope this clarifies the query.

Hi,

In our organization, Sodexo passes are given to the Employee of the Month, worth Rs. 5000, and for spot rewards as well, amounting to Rs. 5000. Sodexo vouchers come in 2 types: 1) Meals pass and 2) Gift Voucher.

Apart from Sodexo, you can also choose a Shoppers Stop voucher which is available in Rs. 1000 denominations.

Regards,
Manju Nair

Hi Sowmya, I am interested in implementing a similar benefit in my company. However, they have inquired about any Income Tax guidelines regarding this provision, where an employee can avail up to Rs. 60,000 per annum. Could you please clarify if tax benefits apply to the full Rs. 60,000 or only a portion of it? It would be greatly appreciated if you could provide the Income Tax guidelines related to this.

Thanks,
Rupali