Per diem rates can significantly impact your TDY experience. Understanding how to work within the system while maximizing your allowance makes the difference between struggling through a trip and coming out ahead financially.
Understanding Per Diem Rates
Per diem varies dramatically by location. Major cities like Washington DC and San Francisco command rates over 00 daily while smaller installations might see rates under 50. Checking the Defense Travel Management Office website before travel helps set expectations.
Rates break down into meals and incidental expenses plus lodging. The M&IE portion covers food, tips, and small purchases. The lodging portion reimburses actual hotel costs up to the maximum rate. Different rules apply to each component.
Meals and Incidentals Strategy
The M&IE rate is yours regardless of actual food spending. Cooking in an extended stay hotel kitchen or eating economically leaves money in your pocket. However, government meals deduct from your allowance, so avoiding mandatory dining facilities preserves your full rate.
First and last travel days pay 75 percent of the M&IE rate under current rules. Planning departure and arrival times cannot change this, but understanding it helps with realistic budgeting.
Lodging Considerations
Unlike M&IE, lodging reimburses actual costs only. Staying under the maximum rate does not pocket the difference. This creates incentive to find comfortable lodging at or near the maximum rate rather than suffering in budget accommodations.
Extended stay hotels often prove economical for longer TDYs. Weekly rates may come in under daily per diem while providing kitchens and more space. The ability to cook can offset the lower M&IE savings from not eating out.
Receipt Requirements
Lodging always requires receipts. Itemized hotel bills with zero balances satisfy auditors. Other expenses over 5 need receipts for reimbursement. Keeping organized records throughout the trip prevents headaches during voucher settlement.
Digital receipt storage through email or apps helps when physical receipts inevitably disappear. Photographing receipts immediately after receiving them creates backups that have saved many travelers from denied reimbursements.
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