What Does “Per Diem” Mean?
What It Is
Per diem is a term that means “per day.” It usually refers to a daily allowance for expenses.
How It Works
Employers may give a set amount of money per day to cover meals, lodging, or travel costs.
The allowance is meant to simplify expense tracking.
Where It’s Used
- Business travel
- Government jobs
- Contract work
- Temporary assignments
Why It’s Used
- Reduces the need for detailed receipts
- Provides predictable daily expenses
- Simplifies reimbursement
Common Examples
- Daily meal allowance while traveling
- Fixed lodging allowance per night
- Per diem rates set by employers
What to Know Next
Per diem rates can vary by location and employer.
Simple Caution
Unused per diem may not always be paid out.
Closing Summary
Per diem means a daily allowance given to cover expenses, most commonly used for work-related travel.
