💰 Per Diem Calculator
Calculate per diem allowances for employees working away from home. Per diem covers meals, lodging, and incidental expenses.
What is Per Diem?
Per diem (Latin: "per day") is a daily allowance paid to employees for expenses incurred while traveling or working away from home.
Common uses in construction:
- Travel to remote job sites
- Temporary assignments
- Training or conferences
- Overnight stays
Quick Calculation
Standard Formula
Total Per Diem = (Lodging Rate × Nights) + (Meals & Incidentals Rate × Days)
Example:
- Lodging: $150/night × 3 nights = $450
- Meals & Incidentals: $60/day × 4 days = $240
- Total Per Diem: $690
Federal Per Diem Rates (2026)
High-Cost Areas
| Location | Lodging | Meals & Incidentals | Total |
|---|---|---|---|
| San Francisco, CA | $301 | $79 | $380/day |
| New York, NY | $297 | $79 | $376/day |
| Los Angeles, CA | $260 | $79 | $339/day |
| Chicago, IL | $234 | $79 | $313/day |
| Boston, MA | $253 | $79 | $332/day |
Standard Rate (Most Areas)
| Component | Rate |
|---|---|
| Lodging | $107/night |
| Meals & Incidentals | $60/day |
| Total | $167/day |
Calculation Methods
Method 1: Full Per Diem (Simplest)
Employee receives full per diem rate regardless of actual expenses.
Advantages:
- Simple to administer
- No receipts required
- Predictable costs
Disadvantages:
- May overpay if expenses are lower
- Employee keeps excess
Formula:
Per Diem = (Lodging Rate × Nights) + (Meals Rate × Days)
Method 2: Actual Expenses (Reimbursement)
Employee submits receipts and is reimbursed for actual expenses.
Advantages:
- Only pay actual costs
- More accurate
Disadvantages:
- Requires receipts
- More administrative work
- Unpredictable costs
Method 3: Partial Per Diem
Pay a fixed amount regardless of actual expenses, but less than full per diem.
Advantages:
- Simple
- Predictable
- Lower cost than full per diem
Disadvantages:
- May not cover all expenses
- Employee may pay out of pocket
Common Scenarios
Scenario 1: 3-Day Trip
Details:
- Location: Standard rate area
- Nights: 2
- Days: 3
- Lodging: $107/night
- Meals: $60/day
Calculation:
- Lodging: $107 × 2 = $214
- Meals: $60 × 3 = $180
- Total: $394
Scenario 2: 5-Day Trip (High-Cost Area)
Details:
- Location: San Francisco, CA
- Nights: 4
- Days: 5
- Lodging: $301/night
- Meals: $79/day
Calculation:
- Lodging: $301 × 4 = $1,204
- Meals: $79 × 5 = $395
- Total: $1,599
Scenario 3: Extended Assignment (30 Days)
Details:
- Location: Standard rate
- Duration: 30 days
- Lodging: $107/night
- Meals: $60/day
Calculation:
- Lodging: $107 × 29 = $3,103
- Meals: $60 × 30 = $1,800
- Total: $4,903
Note: After 30 days, lodging rate may reduce (check company policy).
Tax Implications
For Employees
- Taxable: If per diem exceeds federal rates
- Non-taxable: If per diem equals or is less than federal rates
- Receipts: Not required for non-taxable per diem
For Employers
- Deductible: Per diem payments are business expenses
- Documentation: Keep records of dates, locations, rates
- W-2 Reporting: May need to report if exceeds federal rates
Company Policy Considerations
What to Include
- Per diem rates (by location or standard)
- When per diem applies (distance from home, overnight stays)
- Receipt requirements (if any)
- Maximum duration
- Approval process
- Tax treatment
Sample Policy Language
"Employees traveling more than 50 miles from their home base and requiring overnight stays are eligible for per diem. Standard rate is $167/day ($107 lodging + $60 meals). High-cost areas use federal GSA rates. Per diem is paid without receipts and is non-taxable up to federal limits."
Best Practices
- Use Federal Rates - Simplifies tax compliance
- Set Clear Policy - Document when per diem applies
- Track Locations - Different rates for different areas
- Consider Duration - May reduce rates for extended stays
- Document Everything - Dates, locations, amounts
Common Mistakes
| Mistake | Problem | Solution |
|---|---|---|
| Paying per diem for day trips | Unnecessary cost | Only for overnight stays |
| Not adjusting for location | Over/under payment | Use location-specific rates |
| No policy documentation | Tax issues | Document policy clearly |
| Mixing per diem with actual expenses | Confusion | Choose one method |
| Not tracking days | Overpayment | Track actual days worked |
Quick Reference Table
Standard Rate Areas
| Duration | Lodging | Meals | Total |
|---|---|---|---|
| 1 day | $107 | $60 | $167 |
| 3 days | $214 | $180 | $394 |
| 5 days | $428 | $300 | $728 |
| 7 days | $642 | $420 | $1,062 |
High-Cost Areas (Example: SF)
| Duration | Lodging | Meals | Total |
|---|---|---|---|
| 1 day | $301 | $79 | $380 |
| 3 days | $602 | $237 | $839 |
| 5 days | $1,204 | $395 | $1,599 |
| 7 days | $1,806 | $553 | $2,359 |
Interactive Calculator
Related Resources
- Overtime Calculator - Calculate overtime pay
- Prevailing Wage Calculator - Public works rates
- Labor Burden Calculator - True cost of labor
Use federal GSA per diem rates as your standard. They're updated annually, tax-compliant, and location-specific. Check gsa.gov for current rates.