{"id":13528,"date":"2026-11-11T12:54:33","date_gmt":"2026-11-11T11:54:33","guid":{"rendered":"https:\/\/www.hoorayhr.io\/en\/hr-glossary\/per-diem\/"},"modified":"2026-11-11T12:54:33","modified_gmt":"2026-11-11T11:54:33","slug":"per-diem","status":"publish","type":"knowledgebase","link":"https:\/\/www.hoorayhr.io\/en\/hr-glossary\/per-diem\/","title":{"rendered":"Per diem: what it is and how to manage it as an employer"},"content":{"rendered":"<h2>What does a per diem cover?<\/h2>\n<p>A per diem covers the extra costs of eating and small expenses that an employee only has because they are travelling for work. It applies to trips such as a client visit in another city, a trade fair abroad or a temporary project on site.<\/p>\n<\/p>\n<ul class='-checklist -compact '>\n<li>Breakfast, lunch and dinner during the trip<\/li>\n<li>Drinks and snacks on the road<\/li>\n<li>Small incidental costs, such as tips, depending on your policy<\/li>\n<\/ul class='-checklist -compact '>\n<p>\n<p>Transport and accommodation are usually handled separately: train tickets, flights and hotel bills are reimbursed at actual cost, and mileage with a private car is often paid at a fixed rate per kilometre or mile.<\/p>\n<h2>Is a per diem taxable?<\/h2>\n<p>A per diem is tax-free in many countries as long as it stays within the limits set by the local tax authority and the trip is genuinely for business. Some countries publish fixed statutory daily rates, sometimes with separate rates for each destination country. Others leave the amount to the employer, as long as it is reasonable compared with the actual costs. Anything above the allowed amount is usually treated as taxable salary. Always check the current rules with the tax authority in the country where the employee is on your payroll.<\/p>\n<p><!-- afbeelding nodig: Diagram per diem versus actual cost reimbursement, with the steps submit and approve. alt: Per diem compared with reimbursing actual travel costs --><\/p>\n<h2>Per diem or actual costs: which one should you choose?<\/h2>\n<p>You can reimburse travel meals with a per diem or by paying the actual costs based on receipts. Both work, as long as your travel policy is clear and the amounts match the costs employees really have.<\/p>\n<h3>Reimbursing actual costs<\/h3>\n<p>The employee pays and submits every receipt. This is precise, but it means employees have to keep everything and HR has to check every receipt.<\/p>\n<h3>Paying a per diem<\/h3>\n<p>You set a daily amount in your travel policy. Employees no longer need restaurant receipts, only the travel dates, times and the purpose of the trip. Check with your accountant or payroll provider that the amount stays within the tax-free limit.<\/p>\n<h3>Example: a three-day trade fair<\/h3>\n<p>An account manager attends a trade fair from Monday to Wednesday and stays two nights in a hotel. Breakfast is included in the hotel bill that the employer pays. The travel policy pays a daily per diem for meals, reduced for any meal the company already pays for. So the per diem for Tuesday and Wednesday is reduced for breakfast. This way no meal is paid for twice.<\/p>\n<div class=\"cta -small  background-blue-light\"><span class=\"cta__text\">Tired of checking receipts by hand?<span class=\"cta__description\">Receipts, travel expenses and approvals in one place instead of spreadsheets and email.<\/span><\/span><a class=\"button -primary -small\" href=\"https:\/\/www.hoorayhr.io\/en\/discover\/\">Discover HoorayHR<\/a><\/div>\n<h2>What are the pros and cons of a per diem?<\/h2>\n<p>A per diem makes expense claims simple, but it does not always match the real costs of a trip.<\/p>\n<h3>Pros of a per diem<\/h3>\n<\/p>\n<ul class='-checklist -compact '>\n<li>No restaurant receipts to collect and check<\/li>\n<li>Everyone gets the same amount, which is clear and fair<\/li>\n<li>Approval is fast: travel dates and purpose are enough<\/li>\n<\/ul class='-checklist -compact '>\n<p>\n<h3>Cons of a per diem<\/h3>\n<\/p>\n<ul class='-checklist -compact '>\n<li>In expensive cities the amount may not cover the real costs<\/li>\n<li>If the amount is above the tax-free limit, part of it becomes taxable<\/li>\n<li>Meals the company already pays for need to be deducted<\/li>\n<\/ul class='-checklist -compact '>\n<p>\n<h2>How to set up a per diem policy<\/h2>\n<p>The easiest way to manage a per diem is a short travel policy that everyone can find. It prevents discussions and one-off agreements per employee.<\/p>\n<\/p>\n<ul class='-checklist -compact '>\n<li>Step 1: Define what counts as a business trip and who the policy applies to<\/li>\n<li>Step 2: Choose a per diem, actual costs or a combination<\/li>\n<li>Step 3: Agree which details employees submit: dates, departure and return times, destination and purpose<\/li>\n<li>Step 4: Decide who approves expense claims and the deadline for submitting them<\/li>\n<\/ul class='-checklist -compact '>\n<p>\n<h2>Managing travel expenses in HoorayHR<\/h2>\n<p>HoorayHR is all-in-one HR software for SMEs with 10 to 500 employees, which lets you handle expense claims and travel expenses alongside all your other HR processes. Employees scan receipts with our <a href=\"https:\/\/www.hoorayhr.io\/en\/hr-self-service-app\/\">mobile app<\/a> and submit them straight away. You decide who can view and approve expense claims, and the monthly overview shows everything at a glance. We calculate <a href=\"https:\/\/www.hoorayhr.io\/en\/travel-expenses-app\/\">travel expenses<\/a> automatically, and through our <a href=\"https:\/\/www.hoorayhr.io\/en\/integrations\/\">integrations<\/a> approved claims go straight to your accounting software.<\/p>\n<div class=\"cta -small  background-blue\"><span class=\"cta__text\">Want to handle travel costs without a pile of receipts?<span class=\"cta__description\">See in 30 minutes how expense claims and travel expenses work in HoorayHR.<\/span><\/span><a class=\"button -primary -small\" href=\"https:\/\/www.hoorayhr.io\/en\/schedule-demo\/\">Schedule a demo<\/a><\/div>\n<p>A clear per diem policy saves a discussion after every trip. Set the rules once, then let submitting and approving run digitally.<\/p>\n<div itemscope itemtype=\"https:\/\/schema.org\/FAQPage\"><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><h3 itemprop=\"name\">Is an employer required to pay a per diem?<\/h3><div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\"><div itemprop=\"text\"><p>In most countries there is no general legal obligation. A per diem can follow from a collective agreement, the employment contract or the company travel policy. Check what applies to your sector and country.<\/p><\/div><\/div><\/div><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><h3 itemprop=\"name\">What is the difference between a per diem and an expense claim?<\/h3><div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\"><div itemprop=\"text\"><p>A per diem is a fixed daily amount for meals and small costs, paid without receipts for each meal. An expense claim reimburses the actual costs, based on receipts. Many companies combine both: a per diem for meals and expense claims for hotels and transport.<\/p><\/div><\/div><\/div><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><h3 itemprop=\"name\">Do employees need receipts for a per diem?<\/h3><div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\"><div itemprop=\"text\"><p>Not for the meals covered by the per diem. They do need to record the travel dates, departure and return times, destination and purpose of the trip, so the allowance can be justified. Receipts for hotels, tickets and parking still go into the expense claim.<\/p><\/div><\/div><\/div><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><h3 itemprop=\"name\">How is a per diem calculated?<\/h3><div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\"><div itemprop=\"text\"><p>A per diem is usually calculated per travel day, often with a lower amount for partial days such as the day of departure and return. Meals the employer already pays for, such as a hotel breakfast, are typically deducted. The exact rates and rules depend on your country and your travel policy.<\/p><\/div><\/div><\/div><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><h3 itemprop=\"name\">What is the fastest way to process per diems and expense claims?<\/h3><div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\"><div itemprop=\"text\"><p>The fastest way is an app: employees photograph receipts, enter the trip and submit. A manager or HR then approves digitally, and the approved amounts go to accounting in one go.<br>\n<\/p><\/div><\/div><\/div><\/div>\n","protected":false},"author":18,"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-13528","knowledgebase","type-knowledgebase","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.8 (Yoast SEO v28.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Per diem allowance: a guide for employers | HoorayHR<\/title>\n<meta name=\"description\" content=\"What a per diem covers, how it differs from reimbursing actual costs and how to set up a clear travel policy for your team. 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