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What is per diem? Per diem is an allowance for lodging, meals, and incidental expenses.
Per diem is an allowance paid to your employees for lodging, meals, and incidental expenses incurred when travelling. This allowance is in lieu of paying their actual travel expenses.
According to California labor lingo, a per diem employee is an employee who doesn't have a regular schedule but instead works hours as assigned. This category of employee is common in a variety of industries including education and healthcare.
The base daily traveling allowances will rise slightly from $155 per day in 2021 to $157 per day in 2022. Per diem lodging rates will account for that rise, increasing from $96 per night to $98. Meals and incidental expenses will not change from their current range of $59-$79 per day.
Per Diem Formula To calculate a per diem amount, divide the annual rate by 365, then multiply the result by the principal amount.

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For example, a per diem payment for an information technology (IT) consultant working for the week in another city could be $200 per day\u2014$100 for accommodations, $50 for food, and $50 for incidental costs.
Per diem is a Latin phrase that means "for each day." Per means "for each" and diem means "day" in Latin. People often use the phrase per diem when talking about employee classifications and business travel expenses. You might have heard of a \u201cper diem employee\u201d or a \u201cper diem meal allowance.\u201d

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