Flat-Rate Per Diem

A flat-rate per diem is a standardized daily payment made to employees when traveling for business. Rather than requiring itemized receipts for each expense, companies offer a fixed amount per day to cover meals, accommodations, and incidentals. This method ensures consistency and eases the burden of travel expense reporting.

Per diem rates are typically set by government agencies or internal company policies and can vary based on the destination. For example, cities with a higher cost of living may warrant higher daily rates. This structure helps control corporate travel costs while ensuring employees are fairly compensated for out-of-pocket expenses.

Flat-rate per diem is widely used in corporate travel management as it reduces administrative overhead, speeds up reimbursement processes, and minimizes disputes over eligible expenses. It also aligns with compliance standards and supports clearer budget forecasting.