Must-know information on Per Diem

 

What is a Per Diem?

A per diem is a daily allowance provided by an employer to cover expenses, typically for meals and lodging, when an employee is on a business trip. Instead of submitting individual receipts for reimbursement, the employee is given a fixed amount to spend each day of their trip.

What determines a Per Diem?

Per diem rates vary by location due to the cost of living and while most jurisdictions allow the use of per diems, each has its own regulations and maximum amounts for non-taxable daily allowances.

Per diem compliance - description illustration

What does this mean for companies?

Companies can choose to follow the official maximum amounts or offer higher daily allowances, which would count as taxable income for the employee. Please refer to our country pages for more information on local expense compliance rules that may apply to you.

Important: This website is for general information only. Check with your local authority to ensure compliance, as there may be unique factors to consider for your company.

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