Pay · HR glossary

Per Diem

Per diem is a daily allowance for specified expenses, commonly meals and incidental costs during business travel. Rates and eligible items depend on policy and applicable tax rules.

Example

An employee receives a stated daily travel allowance for eligible days instead of claiming each covered meal separately, as permitted by the policy.

What to keep in mind

Clarify which costs are included and whether partial days or provided meals change the amount. A per-diem label does not automatically make a payment tax-free or remove record requirements.

Further reading

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