Per diem is a Latin term that means “per day.” In a business context, per diem is typically used to refer to a daily allowance or rate that is given to an individual for certain expenses, such as travel or meals.
For example, when an employee travels for work, their employer may provide them with a per diem rate for meals and other expenses. This per diem rate is based on the government’s standard reimbursement rate for that specific location and is meant to cover the costs of food and other incidental expenses incurred while traveling.
Per diem can also be used to describe a daily rate for rental properties, such as corporate housing or executive rentals. In these cases, the per diem rate is the daily rental rate, and the tenant is typically required to pay the rental rate for each day they occupy the property.
Overall, per diem is a way to allocate funds or expenses on a daily basis, and it is commonly used in a variety of business and financial contexts.