Per Diem Policy Example – Travel and Expense Policies

Per Diem Policy Sample

In this article, we’ll look at the key elements that make up an example Per Diem Policy. We’ve included some starter/boilerplate information to help you get started writing this policy for your company. If you’re looking for help in setting up your policies & procedures or employee manual/handbook, our team can assist.

Per Diem Policy Template

The following are the main elements that should be included in your Per Diem Policy:

1. Title Page

• Policy Title: Per Diem Policy
• Company Name: The name of the organization implementing the policy.
• Policy Number (if applicable): For easy reference within the company’s policy structure.
• Version Control: Date of creation, last review, and version number.
• Effective Date: The date the policy becomes operational.
• Approval Authority: Name and title of the individual who approved the policy.

2. Purpose/Objective

• A brief statement explaining why the Per Diem Policy exists. This section outlines the policy’s purpose in relation to the company’s goals, regulatory requirements, or ethical standards.
• Describe what problem or issue the policy addresses.
• Example Purpose/Objective:

The Per Diem Policy aims to streamline the reimbursement process for employees traveling for work by offering a fixed daily allowance. This allowance covers meals, lodging, and incidental expenses, eliminating the need for detailed expense reporting and receipts. By providing a standardized amount, the policy ensures consistency, simplifies budgeting, and reduces administrative tasks. It supports employees in managing travel-related costs efficiently while maintaining compliance with company travel and expense guidelines

3. Scope

• A description of who the Per Diem Policy applies to (e.g., employees, contractors, vendors).
• Specify any exceptions to the policy.
• Explain departments or roles affected, if necessary.
• Example Scope:

This policy applies to employees traveling for work, offering a fixed daily allowance to cover meals, lodging, and incidental expenses. It ensures consistent reimbursement practices and simplifies expense reporting. Employees must adhere to the guidelines outlined in the policy to qualify for per diem rates, which vary based on location and duration of travel. The policy aims to streamline financial management during business trips, reduce administrative burden, and maintain budgetary control. It is part of the broader Travel and Expense Policies, ensuring compliance and fiscal responsibility

4. Definitions

• Clarify any key terms or jargon used within the Per Diem Policy to ensure understanding.
• Avoid assumptions about familiarity with industry-specific terminology.
• Example Definitions:

The Per Diem Policy offers a set daily allowance to cover meals, lodging, and incidental expenses for employees on work-related travel. This policy falls under the broader category of Travel and Expense Policies, ensuring that employees are reimbursed for necessary expenses incurred during business trips. It simplifies the reimbursement process by providing a predetermined amount, eliminating the need for detailed expense reports. This approach helps manage travel costs effectively while ensuring employees have the necessary resources during their trips

5. Policy Statement

• A detailed outline of the Per Diem Policy itself, including all rules, expectations, and standards.
• It should be direct and clear so that it leaves no ambiguity about the company’s position or requirements.

6. Procedures

• Step-by-step instructions on how to implement or comply with the Per Diem Policy.
• Include any forms, tools, or systems that employees must use.
• Describe the responsibilities of different roles in ensuring adherence to the policy.
• Example Procedures:

Employees must submit a travel request form before their trip, detailing the purpose, destination, and duration. Upon approval, they receive a fixed daily allowance covering meals, lodging, and incidental expenses. Receipts are not required for expenses covered by the per diem, but employees must keep records of travel dates and locations. If actual expenses exceed the per diem, employees are responsible for the difference. The per diem rates are determined by the destination and are subject to periodic review. Any unused per diem funds must be returned. Employees must submit a travel expense report within 30 days of returning, including any additional expenses not covered by the per diem. Non-compliance may result in reimbursement delays or denial

7. Roles and Responsibilities

• List the roles responsible for enforcing or overseeing the Per Diem Policy (e.g., managers, HR).
• Define who is accountable for reporting, monitoring, and updating the policy as needed.
• Example Roles and Responsibilities:

Employees must adhere to the Per Diem Policy when traveling for work, using the fixed daily allowance for meals, lodging, and incidental expenses. They are responsible for managing their expenses within the provided per diem rates and must retain receipts for any expenses not covered by the allowance. Managers are tasked with approving travel plans and ensuring compliance with the policy. The finance department oversees the reimbursement process, verifies documentation, and ensures adherence to budgetary constraints. Any exceptions or deviations from the policy require prior approval from management

8. Compliance and Disciplinary Measures

• Outline how compliance will be monitored or enforced.
• Describe any consequences or disciplinary actions for failing to follow the policy, including the escalation process.

9. References and Related Documents

• Include links or references to any laws, regulations, or company guidelines that support the Per Diem Policy.
• Reference related company policies that connect or overlap with the document.

10. Review and Revision History

• State the review cycle (e.g., annually, biannually) and who is responsible for reviewing the Per Diem Policy.
• A history section that lists all revisions made to the document, including dates and reasons for changes.

11. Approval Signatures

• Signature lines for key decision-makers who have authorized the policy (CEO, department head, HR manager).

12. Appendices or Attachments (if needed)

• Additional information, FAQs, or case examples to provide more context or clarify how the Per Diem Policy applies in specific situations.
• Any relevant forms or templates employees need to complete.