Business travel expenses – Per diems
Per diems -Who is eligible?
Business travel expenses are for all employees who are going on a business trip. According to the Employment Relationships Act (ZDR-1), the employer must provide the employee with reimbursement of expenses. This is the case when the employee is performing certain work and tasks on a business trip. You can calculate your per diems on our free calculator.
Per diem amount
The employer pays the reimbursement of food expenses on the business travel in the form of a daily allowance. The payment amount is not the same. It is always different because it depends on the location of the travel route. It also depends on the duration of the trip and the payment of breakfast if the trip includes an overnight stay.
How To Calculate Per Diem for a Business Trip
The tax-free amount of the daily allowance for a business travel abroad depends on the duration of the trip. The exact amount depends on an individual country or area in the Decree on the reimbursement of expenses for business trips abroad.
- When the trip lasts more than 14 hours to 24 hours, the full daily allowance (three meals) is charging.
- If the trip lasts more than 8 hours to 14 hours, 75% of the daily allowance (two meals) is charged.
- In case the trip lasts more than 6 to 8 hours, 25% of the daily allowance (one meal) is charged.
What if a worker visits several countries on one business travel? The cost of meals calculates on a country-by-country basis. Meals that an employee receives on the plane are also payable meals . Take a look also at our free salary calculator.
Reimbursement of other costs
The employee can also reimburse all transport costs, parking fees and all other costs. In case the employee performs duties on a business travel, then he must attach invoices for each of the expenses. The employer also has the obligation, under certain conditions, to pay holiday pay, length-of-service allowance, past-service allowance, and jubilee award.