The HR Dictionary

Per Diem

In Human Resources, "per diem" refers to a daily allowance given to employees to cover their expenses when they are traveling for work. This allowance is intended to cover expenses such as lodging, meals, and transportation.

The per diem rate varies depending on the location and the purpose of the travel, and it is typically set by the company or organization. Some companies use a standard per diem rate across all locations, while others may adjust the rate based on the cost of living in the area.

The purpose of providing a per diem is to ensure that employees are able to cover their expenses while traveling without having to submit receipts or seek reimbursement for each individual expense. This can streamline the expense reimbursement process and make it easier for both employees and the company.