The face value of “cheques repas” will increase from €8.40 to €10.80 in Luxembourg. This measure will be adopted on the first of January 2017 as part of the new tax reform programme announced recently by the government.
Starting in January, restaurant vouchers will get a boost of 30%. In fact, €2 will be added to their current value. The goal is match the average price of daily specials that, according to suppliers of meal vouchers, cost €12. This increase is part of the additional measures announced by the government on Thursday (in French).
The decision comes as a surprise as it was long awaited by many in the restaurant sector. Moreover, the reform was welcomed right away by the trade unions LCGB and OGBL.
The increase will, the government said, give 60,000 employees an increase in their purchasing power. Which means that they will be ahead by €518 per year in real terms.
As for employers, they will see little financial impact, according to the finance ministry. While they pay two-thirds of the face value of restaurant vouchers, the amount is tax deductible. Employee’s one-third share is non-taxable too. Therefore, the state will take on this increase. This will cost €345 per employee per year, that to say a total of €20.7 million per year.