Per Diem is a term often used in businesses, organizations, or government bodies to refer to a fixed daily monetary allowance provided to employees or contractors. This allowance is intended to cover expenses they might incur while traveling for work purposes, staying away from their typical work location, or working at a distant temporary assignment. Such expenses commonly include meals, lodging, tips, and other incidental spends.
For example, a company may provide a per diem of $100 for employees on overnight business trips, where $50 may be allocated for meals, $40 for lodging, and $10 for incidentals. Unlike traditional reimbursements, a per diem does not usually require detailed receipts or documentation, as it is a set amount agreed upon in advance.
By offering per diem, employers simplify bookkeeping and financial planning for travel expenses, and employees can avoid worrying about the meticulous tracking of every single expenditure. Related terms that might arise when discussing per diem policies include travel costs, expense accounts, and budgetary controls in corporate settings.