Per Diem

Introduction

While benefits like maternity leave and thirteenth-month pay often receive more emphasis, there are
others that may, and should, also be to your benefit as an employee
Benefits are an integral part of an employee’s compensation package, which is often the key
consideration for many when deciding to accept, and/or remain at, a job. Understandably, the more
comprehensive the benefits are, the more beneficial it is to us as we work full-time.
However, apart from the maternity leaves, thirteenth-month pays, and government contributions that
we are all generally familiar with, there are others that we may be entitled to or are voluntarily being
provided by our employers that we are not as familiar with or making use of.

Content of the topic

“Per Diem” literally translates to “per day”, and is typically the verbiage used when referring to the
compensation of employees who work on consultancy or on, again, a “per day”, basis. However, per
diem also often refers to the method of compensating employees for work-related travel expenses they
have incurred.
In the private sector, this type of per diem benefits are commonly set at the discretion of the
company, and usually comes in the form of a company credit card or other similar expenditure accounts,
or as petty cash used as a work-related travel budget. This is very helpful for jobs that involve an
extensive amount of travel or commuting, but again, it is not required of privately-owned companies.
Those employed in government, on the other hand, can refer to Executive Order (EO) 298 or
Prescribing Rules and Regulations and New Rates of Allowances for Official Local and Foreign Travels of
Government Personnel. It mandates that a Php800 allowance, regardless of rank and destination, be
provided to government workers for work-related travel. Under the EO, 50-percent of the allowance or
Php400 should go to lodging, 30-percent, or P240, for meals, and 20-percent (or P160) for incidental
expenses.

Section 5. Travel Beyond 50-Kilometer Radius from the Permanent Official Station, shall be allowed of
the following expenses;

 Transportation Expenses and Miscellaneous Expenses

 Daily Travel Expenses (DTE), maximum Php 1,500
 Travel Expenses in Excess of Authorized Travel Rates