The AIOE-EY report titled “Canteen and Meal Cards: Enhancing Employee Welfare through Meal Cards in the Modern Workplace” was released at the 90th Annual Convention of the All India Organisation of Employers (AIOE), an allied body of FICCI. This report highlights the need for more flexibility in workplace meal provisions by enabling the use of electronic meal cards as a viable alternative to traditional canteen facilities. This is in line with the evolving dynamics of workplaces worldwide, especially with hybrid and remote working models.
The report reviews the international adoption trend of meal cards in a country like the United Kingdom, France, Brazil, and Japan, where they serve as a convenient and easy solution for employers and workers. In India, where statutory provisions require canteens, the report feels that introduction of meal cards could help bridge some of the challenges facing organizations—particularly start-ups, small and medium enterprises, and hybrid workplaces—which have difficulties in managing the cost and logistical hassles of an in-house canteen.
The research points out the demand for flexible meal solutions on the part of employees at work and how modern workplace trends necessitate alternatives to the traditional canteen. Meal cards enable employees to enjoy meals at nearby restaurants or cafes and provide continued nutrition support even on work-from-home days. Survey results also reveal that 52% of respondents already provide or are considering meal cards for their workforce, indicating an evident shift toward this flexible alternative.
The report also gives insights into the financial and logistical challenges of running canteens, especially for organizations that have hybrid work models, which causes fluctuations in office attendance. Outsourcing the management of canteens adds to compliance burdens, and meal cards are more efficient and scalable. Being in line with the ILO’s Welfare Facilities Recommendation (No. 102), which emphasizes a good supply of nourishment at workplaces, meal cards are a modern way toward employee health and productivity.
The report, thus, recommends that statutory provisions, such as Section 46 of the Factories Act, 1948, and Section 24 of the Occupational Safety, Health and Working Conditions Code, 2020, be amended. It further suggests that the tax exemption limit on meal cards, at ₹50 since 2001, be revised considering inflation and increasing cost of healthy meals.
The report suggests that financial entitlements through meal cards should be adequate enough to pay for the employees’ meals and be treated as statutory welfare rather than a tax payable perquisite. Standardization of meal quality, hygiene, and nutritional value of the meals should be made mandatory through cooperation among employers, meal card providers, food vendors, and government departments. More options are provided, such as partnering with local restaurants to establish meal-card outlets at work premises.
To prioritize flexibility, affordability, and employee well-being, the report foresees meal cards as innovative answers to meet the requirements of the modern Indian workforce with regard to nutritional adequacy and operational efficiency.