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If you frequently have lunch meetings with clients, you might also be given an allowance for covering the meal. In some jobs, employees might have a set amount of money they’re allowed to spend per day on meals and other expenses like lodging, particularly when they travel often and incur a cost as a result of their work. In addition to referring to a type of work commitment, the term per diem is also used in reference to employees’ expenses or an allowance they might get. If you’re a full-time employee, that doesn’t necessarily mean the words “per diem” will never apply to you. Per Diem as It Relates to Allowance or Reimbursement It’s probably not the best choice for you if you’re keen on finding a stable job that offers benefits, paid time off, and lots of room for growth. If you like the idea of working on an as-needed basis, which might be great if you’re looking to make some extra cash, this kind of employment might be a great fit for you. Per diem work may be a great option for you if you’re not ready to commit to a long-term, full-time job and if you generally have a flexible schedule that allows you to dictate your own hours on short notice.

Another example is the healthcare industry, where workers are sometimes employed based on the need of the hospital or facility at a given time.Ĭontractors tend to operate with a per diem arrangement as well some days their work may be exceptionally difficult, and other days it may feel a bit slower, but regardless, they are paid a fixed amount for a shift of day of work. In the field of education, for example, a substitute teacher might be labeled a per diem employee, because this is a position that usually needs to be filled urgently and by the day. If you’re looking for a job, you may notice employers listing per diem positions that pay by the shift or by the day - particularly within industries where temporary work is common or where work is often needed on short notice or on an as-needed basis. If you’re a per diem employee, that means you’ve signed on to work for a specific set of work hours at a specific level of pay without committing to a long-term, full-time job. What does per diem work mean? Per diem work is one way to refer to a career opportunity that’s not being offered as a full-time job. What Does it Mean to Be a Pay Per Diem Employee? For instance, if you’re traveling and need to stay in a hotel in New York City, the per diem allowance for this expense will be much higher than it would be if you were staying in a hotel in Kentucky since a New York hotel will be more expensive. Since the cost of living and expenses varies considerably from place to place, you can expect to have a larger per diem for some cities than others. refer to the GSA’s per diem rate guide to determine per diem rates for various U.S. This is the amount of money you may spend on necessities, such as meals, per day if you are traveling for business.Ĭompanies in the U.S. The federal per diem guidelines may change year to year, but they’re available on the GSA website (where you can search for GSA federal per diem rules in different locations). General Services Administration (GSA) has set federal per diem rates for any official government travel.

We’ll outline some of the common uses for the term “per diem” so you understand how it might be used in different contexts. In business, a per diem generally refers to an amount of money you receive or may spend per day from your employer. Per diem, a Latin term, literally translates to “per day” or “for each day,” and it’s often used in the context of jobs, internships, and employment.

At some point throughout your career or job search, you’ve probably come across the words “ per diem.” What does per diem mean? Even though it sounds a bit like “carpe diem” - which you probably know translates to “seize the day” - its meaning isn’t quite as exciting.