per diem

Per diem is a Latin phrase that translates to “per day.” Generally, per diem describes a daily amount paid to a person for work expenses incurred during work travel. This most commonly includes accommodation and meals, though other expenses can be included. Generally, per diem is calculated based on a set rate rather than actual expenses incurred. For example, a per diem rate might grant $20 per meal whereas a person might only spend $10. In this case, a person usually does not need to pay back the extra funds.

The federal government sets per diem each year.  They vary by locality and can be viewed here .  Many private companies and institutions use these rates as well.

[Last reviewed in July of 2020 by the Wex Definitions Team ]

Wex

• LIFE EVENTS
• employment
• employee benefits
• wex definitions