What is per diem and how is it applied in travel pay?

• A. A daily allowance to cover meals and incidental expenses during travel; rate varies by location
• B. A lodging-only stipend
• C. A travel expense grant for all travelers
• D. A separate allowance for equipment maintenance

Answer: (A)

Per diem is a fixed daily allowance used to cover meals and incidental expenses while you’re traveling. It provides a predictable budget for the day without needing to submit receipts for every meal or small purchase. The amount isn’t the same everywhere; it’s set by location because costs differ by city or country, and policies can change by year or program. In travel pay, you typically receive the per diem for each travel day, and some policies also apply it to partial days or adjust for days spent at your destination.

This concept is specifically about meals and incidental expenses, not lodging or other costs. So it isn’t a lodging-only stipend, a universal travel grant for all travelers, or an allowance for equipment maintenance. Those describe different kinds of support that don’t align with the usual scope of per diem.