What is the per diem payment?

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There are employees who get a daily allowance (payment) by the employer to cater for expenses made while working away from the home. Generally speaking, these it includes costs such as meals, lodging, and incidental expenses. The employer pays a set amount each day instead of reimburring the actual receipts. It makes account keeping easier, and it is easier for an employee to manage the travel related costs. The city or country in which the work was performed may have different per diem rates and they may be guided by government standards, such as those by: the United States General Services Administration. Read more for per diem definition.