Q: I work for a non-profit organization doing work which I love. Part of my job involves doing a lot of overnight travel. My question involves the “per diem” amount the company provides for our meals. For the last few years we’ve been reimbursed the same amount: $6 for breakfast, $11 for lunch and $19 for dinner.
I’d like to suggest that the per diem amount be raised. So what’s the best way to make case? Is there a national standard that I could reference for support?
A: A per diem for those who haven’t heard of the term is money that you get to spend on food and other incidentals (tips, parking) when you travel for work. Some companies stipulate the number of hours you must be away (8-12 hrs) and sometimes the number of miles (usually 50 miles) before you are eligible for it.
The amounts you mention are on the low side and that may be understandable since you work for a non-profit. So, if you are looking for some validation that the amounts should be raised, you may find that at a government website called the General Services Administration (GSA.gov). There, you can look up amounts doing a search by city or zip code.
I did a quick search for your area and the results were as follows: $13 for breakfast, $15 for lunch and $26 for dinner and $5 for incidentals.
You can also call around to other non-profits in your area and see how they compare. Then, armed with this information, you can approach your employer and offer your finding and suggestions. Because the difference between your current per diem and what’s suggested for your area is a lot (about 50%, going from $36 to $54) you might want to suggest a gradual increase maybe over a 2-3 year period.
Lastly, an accounting note. Per diem payments are usually not taxable and should not be considered wages. You should not have to pay income taxes on money you have to spend for business travel so make sure that your company is adhering to this. I expect they are, but it doesn’t hurt to double check.
Hope this helps.
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Eva Del Rio is creator of HR Box™ – tools for small businesses and startups. Send questions to Eva@evadelrio.com
