Per Diem Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Per Diem, written in plain English, along with examples of how it is used.

What is Per Diem?

adj. n. latin for “per day”.It is applicable for payments made on daily basis such as travel and lodging fees of an agent or an employee.

History and Meaning of Per Diem

The term "Per Diem" is a Latin phrase that means "per day." It is commonly used in the business world to refer to the payment or reimbursement of expenses incurred on a daily basis, such as travel and lodging fees for employees or agents. The concept of per diem has been around for centuries, originally used by ancient Roman soldiers who would receive daily allowances for food and other necessities during their military campaigns.

In modern times, per diem has become a standard practice in many industries, particularly in the realm of business travel. Companies will often provide a daily allowance to employees who are traveling for work to cover expenses such as meals, transportation, and lodging.

Examples of Per Diem

  1. A company sends an employee to a conference in another city and provides them with a per diem allowance of $200 per day to cover their food and lodging expenses.

  2. An actor on location for a film shoot is given a per diem amount of $100 to cover their daily expenses for meals and incidentals.

  3. A freelance consultant is hired by a company and negotiates a per diem rate of $500 per day to cover their travel and other expenses.

Legal Terms Similar to Per Diem

  1. Retainer - a payment made to an attorney in advance to secure their services for a future legal matter.

  2. Alimony - a court-ordered payment made from one spouse to another to provide financial support after a divorce or separation.

  3. Stipend - a fixed payment made on a regular basis to cover expenses or provide financial support, often used in academic or non-profit settings.