"Per Diem" is a Latin term meaning "per day." It refers to a daily allowance given to employees to cover expenses incurred while traveling for work. This can include costs for meals, lodging, and other incidentals. The amount can vary based on the company's policy or the location of travel. Employers often use per diem rates to simplify expense reporting and reimbursement processes. Instead of requiring employees to submit receipts for every expense, a fixed daily rate is provided. This approach helps manage travel budgets and ensures that employees have the necessary funds while away from home.