What does 'per diem' mean?


Most Helpful Girl

  • per di·em
    pər ˈdēəm/
    adverb & adjective
    for each day (used in financial contexts).
    "he agreed to pay at certain specified rates per diem"
    an allowance or payment made for each day.

    Google is your friemd...

    • I went on google but I've heard other people use it in different contexts and I want points

Most Helpful Guy

  • Per day

    It's usually used in the context of a job or contract when you travel for work. It's daily pay for expenses. It's in addition to your regular pay. In the US it's tax free. It's used instead of direct reimbursement for expenses.

    • I'll also add, that even though the term means per day, it's often converted to an hourly pay. For example if you get $100 per day for expenses, over 5 days that's $500. That might be converted to hourly. So for a 40 hour week your per diem might be quoted as $12.50 per hour which works out to $500 per week. This portion of your pay is tax free in the US - it also means no other payroll deductions like state tax, city tax, SS, etc.

      Then what happens if you work overtime, the extra $12.50 is either converted to regular taxable pay, or it's just eliminated after 40 hours. If it's converted you might get time and a half on it.

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What Girls Said 1

  • Ain't it "carpe diem"? If so, it means 'seize the day'.

    • I don't mean carpe diem

    • I don't know what it means, then.

What Guys Said 3