What is Perdiem?

Per diem is a Latin term meaning "per day," commonly used to refer to a daily allowance given to employees or travelers to cover expenses incurred while traveling for work. This allowance typically includes costs for meals, lodging, and other incidentals, and is often used to simplify expense reporting. Companies may set a specific per diem rate based on location and duration of travel. The per diem system helps manage travel expenses while ensuring employees are reimbursed fairly for their out-of-pocket costs.