{"id":2996,"date":"2022-03-05T23:45:34","date_gmt":"2022-03-05T23:45:34","guid":{"rendered":"https:\/\/blog.vencru.com\/?p=2996"},"modified":"2025-05-21T01:26:17","modified_gmt":"2025-05-21T01:26:17","slug":"per-diem-rate","status":"publish","type":"post","link":"https:\/\/vencru.com\/blog\/per-diem-rate\/","title":{"rendered":"What Is Per Diem? Everything You Need To Know About It"},"content":{"rendered":"\t\t
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Per Diem is a Latin term meaning “Per day” – compensation on expenses incurred during a business trip. Examples of such costs include accommodation, feeding, transportation, and incidental expenses.<\/span><\/p>

From the term Per day, you will see that compensation covers daily expenses for an on-site and client project sponsored by the employee’s company.<\/span><\/p>

These trips offer experiences to the employee, overseen by HR.<\/span><\/p>

What is Per Diem?<\/span><\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Per diem is an allowance paid to an employee by his organization or company to cover the daily living expenses on a business trip.<\/span><\/p>

It provides information on the right amount of money given to an employee to cover his daily expenses while on a business trip.<\/span><\/p>

Within the United States, the GSA is responsible for fixing the per diem rates, whereas, in other geographical areas, the State Department or Department of Defense and foreign rates do.<\/span><\/p>

How Does Per Diem Work?<\/span><\/h2>

As a business owner, when you hire a per diem employee, you need to abide by all applicable labor laws, as well as those surrounding minimum wage and overtime.<\/span><\/p>

While hiring a per diem employee, you should understand that they must get their full per diem rate, regardless of total hours worked.<\/span><\/p>

An example is a scenario where you employ the services of a per diem videographer to capture scenes during an interview with one of your angel investors. If the agreed per diem rate for the videographer is $400 and the job gets completed a few hours earlier than discussed, the per diem employee is allowed his pay of $400.<\/span><\/p>

Another situation is when the videographer works some extra hours. The videographer is entitled to overtime pay depending on the number of hours worked.<\/span><\/p>

How Does Per Diem Relate to Small Businesses?<\/span><\/h2>

There are two different explanations where per diem can be related to small businesses, and they are:<\/span><\/b><\/p>

Per Diem Employees:<\/b><\/h3>

In this situation, employees of an organization work full-time and others part-time.<\/span><\/p>

It is expected of full-time staff to work 7-8 hours every working day (Monday – Friday) and a total of 35-40 hours a week. Whereas part-time staff work in shifts, morning hours between 7 am – 12 pm and afternoon shifts begin immediately between 1 pm – 5 pm.<\/span><\/p>

Per Diem, employees are different from full-time\/part-time employees, as they are employed on a daily or as-needed. Companies and organizations hire per diem employees to get some extra job done such as sitting in for sick staff, and other related\/urgent reasons.<\/span><\/p>

Some sectors where you can find per diem employees are in:<\/span><\/p>

    1. Healthcare sectors<\/span><\/li>
    2. Education sectors<\/span><\/li>
    3. Other areas could be organizations in need of extra support like management, warehouse, event, etc.<\/span><\/li><\/ol><\/li><\/ol>

      Per Diem For Travel Expenses:<\/b>\u00a0<\/span><\/h3>

      The per diem travel expenses covers,<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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