Per diem allowance: Meaning and Definition

What does per diem allowance mean?

Per diem allowance is another name for Per Diem. Per diem is a fixed daily allowance paid to employees to cover routine expenses like meals, local transport, and incidentals during business travel, replacing the need for individual receipt submission.

The two names mean the same thing. You will see "per diem allowance" in some ledgers, reports and contracts and "Per Diem" in others. The full entry covers how it works, with examples.

Read the full definition of Per Diem

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From the glossary

Related terms.

Expense policy Per Diem Per diem is a fixed daily allowance paid to employees to cover routine expenses like meals, local transport, and incidentals during business travel, replacing the need for individual receipt submission. Also called daily allowance, per diem allowance GST basics GST (Goods and Services Tax) India's unified indirect tax that replaced multiple central and state levies, creating a single national market for goods and services. Also called Goods & Services Tax TDS TDS (Tax Deducted at Source) A system where the payer deducts income tax at prescribed rates before paying the payee, and deposits it with the government on the payee's behalf. Also called withholding tax, tax deduction at source, tax withheld at source Payroll and labour compliance Professional Tax (PT) A state-level tax levied on salaried employees, professionals, and traders based on their income slabs. Also called profession tax, P-tax Statutory compliance Business Compliance The process of adhering to all applicable laws, regulations, and industry standards that govern business operations in India. Also called corporate compliance, regulatory compliance Expense policy Expense Audit An expense audit is a systematic review of employee expense claims to verify accuracy, policy compliance, proper documentation, and legitimacy of business expenditures. Also called expense report audit, expense claim audit

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