Background information

In 2022, the prices of food in general and some elementary ingredients, in particular, have surged to unprecedented levels. While consumer prices rose by 10.3% in 2022 (4.9% in 2021), prices of food and non-alcoholic beverages increased by 18.6%, even more than electricity, gas and other fuels (18%). Besides energy and dearness allowance for vulnerable families , the government addressed the effects of rising costs of food by some specific measures:

1. Review of retail food prices at six retailers to combat excessive trade margins .
2. Higher food allowance for employees.
3. Price cap on school meals.

Content of measure

By increasing tax-free employment income, the government has enabled employees to receive higher allowances for food and other work-related expenses. Decree on the tax treatment of reimbursement of costs and other income from employment raised the value of untaxed food allowance (for which employers do not pay taxes) from €6.12 to €7.96 a day. The decree came into force on 1 September 2022.

Furthermore, the decree, issued on 23 December 2022, provided workers with higher untaxed work-related expenses or bonuses: reimbursements for commuting, daily subsistence allowances, field allowance, separation allowance, jubilee bonuses, severance payments, solidarity grants, and payments to apprentices, pupils and students.

To prevent social hardship for pupils and their families, the government froze the prices of school meals (to remain at the level set for the 2021/2022 school year) and rents in student hostels (they are the same as from 1 January 2022 to 31 August 2022). The measures are valid from 1 September 2022 to 31 August 2023.

Use of measure

No information.

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Does not apply to businesses	Parents

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

Unknown.

Views and reactions

The social partners did not react or publicly comment on this measure.

Sources

• 23 December 2022: Decree on the tax treatment of reimbursement of costs and other income from employment 9Uredba o davčni obravnavi povračil stroškov in drugih dohodkov iz delovnega razmerja