Per diems are allowances a company can provide when an employee spends time working somewhere else than the regular working place or residence for more than 8 hours.
This article outlines how to calculate per diem compensation in Germany as per the rules defined by the Bundesministerium der Finanzen.
Circula automatically calculates per diem allowances following these rules, based on the information we ask you to enter in the app while submitting trips. More information on trips in this article.
Per diem rules if you are travelling in Germany
If you are staying in Germany during your trip, you will receive:
- A half day compensation (€12) for your first day of travel
- A half day compensation (€12) for trips that lasted less than 24 hours, if: a) more than 8 hours were spent on trip - exactly 8 hours are not compensated - and b) the trip start time is between 0:00 pm and 4:00 pm
- A full day compensation (€24) for a trip that took 24 hours and/or for each full day in between the first and last days of the trip
- An extra allowance (€20) for each night spent during the trip when no accommodation was provided or paid for by the company
Your daily allowance will be reduced:
- By 20% when breakfast is provided
- By 40% when lunch or dinner is provided
- Entirely if all three meals are provided or separately expensed
❕Important: Please note that the amount to deduct is always calculated against a full day allowance amount, even in the case of half-day compensations. In this case, if the total to deduct is more than the daily allowance itself, the allowance is set to EUR 0 for that day.
- A trip starts when the employee leaves the workplace/residence and ends with the return to these
- A maximum of three months spent on a single trip can be reimbursed
Assuming a three-day business trip in Germany. Our employee leaves his home for the trip on the first day at 6:30 pm. They spend the second day attending a workshop for a client, where the hotel breakfast is paid by the employer. On the third and last day, breakfast is covered again by the employer, the employee expenses their lunch separately, and then travels back home after 6:00 pm.
The employee will receive:
- For day 1: a half day compensation of €12.00
- For day 2: a full day compensation of €24.00 reduced by 20% (€4.80) as breakfast was already covered = €19.20
- For day 3: a full day compensation of €24.00 reduced by 60% (€14.40) as breakfast and lunch were already covered = €9.60
Total compensation: €12.00 + €19.20 + €9.60 = €40.80
Per diem rules when travelling abroad
The same rules as described above apply for trips abroad, but with different compensation rates depending on the country and city. For a given trip day, the applicable rate is:
- The rate of the destination country when travelling from Germany to abroad or from a foreign country to another foreign country
- The rate of the destination country you reach before 00:00 pm local time for intermediate days, if you are travelling to multiple locations the same day
This time our employee goes on a two-day business trip to France. The employee leaves for their trip on the first day at 9:00 am and lands in Paris at 11:30 am where the employee spends the rest of the day at a conference. The second day, the employee takes the plane and lands in Germany at 1:00 pm. Adding that the company didn't provide an accommodation and the employee, therefore, gets an extra allowance instead.
The employee will receive:
- For day 1: a half day compensation of €39.00 (Paris compensation rate) as well as the extra allowance of €135.00 (Paris compensation rate) = €174.00
- For day 2: a half day compensation of €39.00 (Paris compensation rate) = €39.00
Total compensation: €174.00 + €39.00 = €213.00
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