What’s a Reasonable Business Travel Meal Allowance in 2025?
Is your company’s meal allowance suited to the business travel demands that 2025 brings?
With regional cost variations and dietary preferences, determining a reasonable meal allowance for business travellers is no simple task. In this article, we’ll explore standard daily per diem rates in different countries, helping identify a fair food allowance when working away for work. We’ll also outline the key elements of a working meal allowance policy, while taking 2025 business travel needs into account.
A meal allowance for employees is the stipend paid by an employer to cover food costs during business travel. This stipend applies to meal costs incurred during work-related events, including situations like the following:
One employee’s idea of lunch might by a takeaway sandwich, while another’s will be a multi-course, sit-down meal, which is why it’s important to set clear rules and limits on staff meal allowances.
Most countries have guidelines to follow with suggested per diem amounts, but businesses can also create their own meal allowance policies. The purpose of including a meal allowance section in a business travel policy is to prevent employee confusion and keep business travel costs within budget, outlining what is (and isn’t) covered, spending limits, and reimbursement procedures. This also ensures compliance with local regulations and tax laws, as these vary by region.
If your business hasn’t adjusted its meal allowance policy in several years, it’s important to revisit your daily per diems considering the rising costs of business travel.
The good news is that global inflation rates peaked at 9.4% in 2022, now expected by the IMF to fall to 4.2% in 2025 and 3.5% in 2026. Yet inflation doesn’t hit equally across all sectors. While global food prices are expected to increase by 1.9% in 2025, away-from-home food prices are predicted to rise by 3.5%.
Overall, food prices are still up from last year. This is why it’s important to factor inflation into your meal allowance 2025 budget. This rise is reflected in the US General Service Administration’s recommended per diem rates for business travel. In 2024, the GSA suggested a limit of $59 per day for meals and incidentals in the US, rising by $9 to $68 per day in 2025.
Suggested meal allowances for employees vary by region, meant to reflect the differences in cost. For example, dinner in Manhattan will cost more than breakfast in a rural town in Spain.
It’s helpful to use government guidelines as a benchmark when working out a fair meal allowance. While you don’t have to follow these exactly in most cases, these provide a clear framework for subsistence allowance policies.
Here are a few examples of how this works in different countries.
Benchmark rates for staff meal allowances are set by HMRC and are subject to change. As of 2025, government guidelines suggest the following business meal allowance rate for domestic travel:
If the journey is ongoing after 8PM, a supplemental rate of £10 can be provided to cover any additional expenses.
These rates cover domestic meal costs. For international business travel, HMRC also helpfully provides a full guide to suggested meal costs in each country.
You can search by region here.
This table is broken down by country, travel time, and meal type. For example, a suggested lunch allowance for Dubai, United Arab Emirates is AED 139.50 ($37.98), while lunch in Miami is suggested at $24.50.
For business travel expenses incurred in the continental US before or after the 1 October 2024, the IRS suggests using the following per diem allowances:
Benchmark figures are also provided by the General Services Administration (GSA). These rates are the standard for federal agencies, covering meals and incidental expenses during official travel. You can search by specific state or city here.
Germany’s subsistence allowance policies updated its suggested per diems in 2024, and they have remained fixed since then.
A small meal allowance applies to business trips lasting between eight and 24 hours, while a large meal allowance applies to business trips lasting over 24 hours, such as to the USA or Japan.
At present, these suggested flat rates are:
For trips lasting under eight hours – for example, the UK or France – no stipend is required, but employers will usually still cover these costs.
For workers in France, standard meal allowances are set by the French Government at a flat rate. The rate depends on both journey length and whether business travel is domestic, international, or within French territories.
The standard Spanish meal allowance for employees will depend on whether an overnight stay is required or not. Maximum tax-free limits are set at:
With government per diem figures providing a framework, your business can set its own day rates considering the following factors:
When implementing business meal allowance into a travel policy, you can choose from hourly flat rates (half-day, full-day, and overnight trips) or fixed amounts per meal (breakfast, lunch and dinner).
Business travel to locations with a higher cost of living, like London or Paris, might come with a higher meal allowance than those to lower-cost destinations. Try entering your destination into this Corporate Travel Index Calculator for an idea of standard meal costs in cities across the globe.
If employees are entertaining clients and investors, this is a different type of meal to a sandwich purchased in-transit. Set a higher budget to cover the costs accordingly.
Inclusive business practices include catering for employees that have medical, religious, or preferred dietary needs. In many cases, a vegan or kosher meal will cost more, which should be reflected in stipend value.
Managers and executives typically receive a higher discretionary meal allowance than junior employees
Calculating the standard food allowance for working away is the first step toward creating a clear, coherent meal allowance policy for employees to follow.
While all companies are unique, basic travel expense policy templates give you some idea of structure. Here’s a basic outline to follow when crafting a staff meal allowance policy.
Begin the document with a detailed introduction explaining what a meal allowance is, how it works, and why it’s important. Define what qualifies as a ‘travel meal’ and when employees are entitled to use this allowance.
Next, specify the spending limits, whether you’re using a per-meal, per-day, or overnight allowance. You can use a blend of government-provided benchmarks, destination, meal type, event type, and other factors.
When are employees eligible to access this stipend? Some businesses only provide meal allowances for full-time employees, while others require a specific level of seniority. Duration of travel and business trip purpose may also impact eligibility for reimbursement.
Make it very clear what types of expenses are reimbursable in your company policy, along with a list of what isn’t included. This often includes things like alcoholic beverages, personal meals not related to business activities, hotel room service, and meals for personal guests.
State how you would prefer the employee to pay for their meals, whether it’s with a company credit card, prepaid meal card or payroll adjustment.
To reduce manual paperwork and clerical error, it’s best to select one designated platform for expense tracking and business travel payment or reimbursement. That way, business travellers can submit expense reports automatically using tools like FreshBooks, QuickBooks, Expensify, and others. In this section, share which platform, portal, or spend management software your company will use, along with any required forms or documents.
Booking.com for Business integrates with tools like Expensify for real-time, accurate business expense tracking during travel.
Here are two additional business traveller FAQs you should answer in this section:
Typically, employees do need to submit itemised receipts for business travel meals. This breaks down each item and its cost for faster verification and approval.
This will vary by business. Some companies will streamline the process with a preset per diem paid in advance. However, employees might need to submit the date and location of meals and other details for approval.
A meal allowance policy should be a living document, updated to reflect the current costs of business travel. In 2025, these will continue to rise slightly in line with global inflation. It’s no surprise that cost management is key for corporate travel buyers, with 78% placing it in their company’s top three strategic priorities for 2025.
One strategy is to plan business travel in regions with lower costs. For example, Eastern Europe and Latin America are on the rise as popular destinations for business travellers, with lower meal and incidentals costs than North America and Western Europe.
Aside from careful financial planning, a well-written meal allowance policy ensures employees stay within budget on the road. They’ll know what is – and isn’t – covered and will feel empowered to use preferred payment methods.
Finally, use a dedicated business travel management platform like Booking.com for Business to finetune every aspect of company travel. Businesses can reduce overall costs with exclusive discounts on other aspects of business travel, including hotels, flights, and car rental, leaving more room in the budget for meals.
Booking.com for Business also integrates with expense management tools like Expensify, for better control over employee spend and reimbursement throughout the travel process.
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