PAT and PCT: what HR should check in a benefits card

Food and meal allowances usually go into the budget as a “benefit”, but their labor and tax treatment in Brazil depends on how they are granted. That’s where PAT and PCT come in.

What they are

• PAT — Programa de Alimentação do Trabalhador (Worker Food Program). Created by Law 6,321/1976, it is the federal program that provides the legal basis for food and meal allowances paid by card. When the company follows the program’s rules, the amount is not considered salary.
• PCT — Programa de Cultura do Trabalhador (Worker Culture Program). Established by Law 12,761/2012, it created the culture voucher (vale-cultura), used for books, movies, theater, concerts and other cultural products.

“PAT-compliant” is not the same as “enrolled in PAT”

There are two sides:

1. The company granting the benefit. It must be enrolled in PAT and follow the program’s rules: the benefit goes to food, cannot be exchanged for cash and must be available to all eligible employees.
2. The company providing the card. It must operate within the rules: the food balance can only be used at food establishments, and there can be no discounts or kickbacks in exchange for the contract.

A “PAT-compliant” card covers the second side. The first, your company’s enrollment, is HR’s responsibility, and the provider should help with it.

What to ask the provider

• Is the food and meal balance kept separate from flexible wallets (mobility, health, culture, rewards)?
• Does the card prevent the food balance from being spent outside its category?
• Are there fees for the company or the employee? Are issuance, delivery and reissuance charged?
• Does the portal let you adjust amounts per employee and generate the reports your accountant will ask for?

How it works with Target Multibenefícios

Each category is a separate wallet on the same Visa card: food, meals, mobility, health, culture, rewards and more. You choose which ones to enable and how much to load into each. There are no fees for the company or the employee, and issuance, delivery and reissuance are free.

This content is for information only. For your specific situation, confirm eligibility with your company’s accountant or legal team.