Per Diem Breakdown
What is Per Diem?
Per diem is a daily allowance provided by employers to cover expenses during business trips. It includes travel, accommodations, meals, and other incidental costs. Originating from Latin, per diem means “by the day” and can also refer to paying employees daily for work done or based on a set quota. It’s commonly used in temporary or short-term employment situations and differs from traditional payment structures.
Who Qualifies for Per Diem?
Employees traveling 50 miles or more from their permanent address and incurring duplicate housing expenses qualify for housing and meal per diems. Those with duplicate housing expenses but not meeting the distance requirement qualify for meal per diem only.
What Expenses Does Per Diem Cover?
Per diem typically covers lodging, meals, and other incidental expenses during business travel.
How is Per Diem Calculated?
The U.S. General Services Administration (GSA) sets standard federal per diem rates, which private companies often use as a reference.