Mid-shift meal allowance policy under the new regulations 2025

The mid-shift meal allowance is a commonly adopted welfare benefit aimed at supporting employees’ well-being and maintaining workplace productivity. Recently, the legal framework governing this allowance has undergone notable changes, particularly following the effectiveness of Circular No. 003/2025/TT-BNV, which replaced previous guidelines. This article outlines the key issues that employers should consider when formulating and implementing mid-shift meal allowance policies under the new regulatory landscape. 

1. Mid-shift meal allowance under current regulations 

Under point g.5, clause 2, Article 2 of Circular 111/2013/TT-BTC, for non-state enterprises, the level of mid-shift meal allowance is determined based on the agreement between the head of the unit and the president of the grassroots trade union, but must not exceed the maximum level applicable to state-owned enterprises. 

Previously, under clause 4, Article 22 of Circular 26/2016/TT-BLĐTBXH, the maximum allowable mid-shift meal allowance for state-owned enterprises was VND 730,000/employee/month, and this level was also the maximum allowable level for non-state enterprises when establishing their own policies. However, Circular 26/2016/TT-BLĐTBXH expired on 15 June 2025 and has been replaced by Circular 003/2025/TT-BNV, which no longer provides any cap for mid-shift meal expenses. 

According to Official Letter No. 1387/CTL&BHXH-TLSXKD dated 29 September 2025 issued by the Department of Wage and Social Insurance – Ministry of Home Affairs, from 1 August 2025, the mid-shift meal regime shall be governed by the Labour Code. Article 103 of the 2019 Labour Code provides that incentive regimes for employees (including mid-shift meals) are subject to agreement in the labour contract, collective bargaining agreement, or the employer’s internal regulations. 

Accordingly, the current legal framework does not impose a maximum level of mid-shift meal allowances and grants enterprises full discretion to determine an appropriate level of allowance, provided that it is clearly stipulated in one of the following documents: 

• Labour contract; 

• Collective labor agreement; 

• Internal labour regulations; 

• Other internal rules or policies of the enterprise. 

Note: If multiple documents concurrently regulate the mid-shift meal policy, enterprises must ensure consistency among these documents to avoid discrepancies, disputes, or difficulties during implementation. 

2. Personal income tax implications for mid-shift meal allowances 

According to point g.5 clause 2 Article 2 of Circular 111/2013/TT-BTC, where an employer does not provide mid-shift or lunch meals but instead pays an amount to employees, such payment is not included in the employee’s taxable income provided that the allowance level complies with the guidance of the Ministry of Labour, Invalids and Social Affairs (now the Ministry of Home Affairs). 

Based on the guidance of the Department of Wage and Social Insurance – Ministry of Home Affairs mentioned in Section 1 above, the mid-shift meal allowance will not be subject to PIT, provided that the amount does not exceed the level stipulated in the labour contract and the employer’s internal regulations. 

3. Social insurance contributions for mid-shift meal allowances 

According to Official Letter 1198/CTL&BHXH-BHXH dated 5 September 2025 issued by the Department of Wage and Social Insurance – Ministry of Home Affairs, the mid-shift meal allowance is not subject to compulsory social insurance contributions if it is classified as other additional payments under clause 5 Article 3 of Circular 10/2020/TT-BLĐTBXH. 

Therefore, to ensure that the allowance is not included in the social insurance contribution, the labor contract must clearly separate salary and other additional payments (including the mid-shift meal allowance). 

4. Developing meal-allowance policy by employee group 

Given the current flexible regulatory framework, employers may adopt different meal-allowance levels for different groups of employees, provided that such distinctions are clearly reflected in the labor contract or the company’s internal regulations. However, the employer should ensure that: 

• Any difference is based on reasonable grounds, such as the nature of the work, job position, or level of responsibility; 

• The gap between groups is not excessively large to avoid discrimination; 

• The allowance level aligns with the company’s actual financial conditions and overall welfare policy. 

Employers should also note that the absence of a statutory maximum level may prompt the tax authority or the Department of Home Affairs to request explanations during inspections. Excessively high meal-allowance levels, unclear justification criteria, or insufficient internal documentation may lead to the allowance being considered unreasonable. 

Recommendation: Before implementing a grouped-allowance structure or adopting levels significantly higher than common market practice, employers should consider seeking prior guidance from the tax authority or the labor-management authority to ensure legal certainty and mitigate future compliance risks. 

Date Written: 20/12/2025

Share: