Republic Of the Philippines

CHRIST THE KING COLLEGE

GRADUATE SCHOOL
Calbayog City, Samar
MASTER OF ARTS IN EDUCATION

NAME: Ma. Russel Y. Tualla 23-10307

SUBJECT: EDUC. 203- Fiscal and material Resource Management

INSTRUCTOR: Jaime E. Sagayap Jr, edD.

DATE: December 16, 2023

PER DIEM COMPENSATION

What is per diem compensation?
Per diem compensation is a type of payment that covers the costs of meals,
lodging, and other expenses incurred while traveling for work. It is typically
provided to employees who are required to travel frequently for business
purposes. The amount of per diem compensation varies depending on the
location and length of the trip, and it is intended to reimburse the employee for
the actual and reasonable expenses incurred during the trip.

Per diem" is a Latin term that means per day. refers to daily allowances paid to
employees to cover costs incurred while on a business trip.

Per Diem also refers to a per day compensation received by some workers.
They receive their wages by the day or by the quantity of work done.
Expenses that are covered typically include:
accommodation
food
and other incidental expenses such as fees and tips for services.

Different per diem policies to cover these expenses:

Company credit cards: Some companies issue credit cards to their employees.
They use the cards to pay business expenses directly while on the job and
without having to pay any expense out of pocket.

Full or partial expense coverage: Some companies cover employee expenses in

full while others only offer per diem payments for certain expenses—specifically,
lodging, food, and incidentals

Fixed amounts: Many corporations provide their employees with a specific, fixed
daily rate. Employees are expected to cover all or part of their costs with this per
diem.

Types of Per Diem Payments

Fixed Rates
A business that implements a fixed per diem method for business expenses
usually pays the employee a fixed amount per day.

Out-of-Pocket Expenses
When employees are required to pay for their expenses themselves, companies
usually require them to submit claims.

Per Diems for Government Employees

Also known as government per diem rates, are daily allowances or
reimbursements provided to government workers when they are required to
travel for work-related purposes.

The specific rules and guidelines for government per diems can vary from one
country to another and from one government agency to another.

These allowances vary depending on factors such as the destination, purpose of

travel, and cost of living in the area.

Eligible employees must document their expenses, adhere to spending limits,

and comply with agency policies.

Rates are location-specific and subject to occasional updates

Each government agency has its own guidelines and policies regarding per diem
rates and reimbursement.

REFERENCES:
https://www.investopedia.com/terms/p/per-diem-payments.asp#toc-
understanding-per-diems
https://7esl.com/per-diem-meaning/
https://www.thebalancemoney.com/what-is-per-diem-1918233