If per diem is configured as per travel duration, how will it be calculated?

This article explains how ITILITE calculates your per diem reimbursement when your company has configured it based on the duration of your travel.

Table of Contents

• Understanding Per Diem Calculation
• Pro-Tips & Guardrails
• Verification & FAQs

Understanding Per Diem Calculation

By default, ITILITE considers 100% of the daily per diem rate when calculating your reimbursement, regardless of how many hours you spend at your destination.

However, many companies configure per diem to be calculated based on the actual hours you spend at your destination each day. This ensures a fair reimbursement that aligns with your travel duration.

Here’s how it works:

• Your company sets a standard daily per diem rate for a specific destination (e.g., $100 for New York).
• They also define "time slabs" or hour ranges, each with a specific percentage of that daily rate. For example, your company might configure:
  • 0–6 hours at destination → 25% of the daily rate
  • More than 6 hours (up to 24 hours) → 100% of the daily rate
• When you submit a per diem expense, you simply enter your trip's start and end dates and times. ITILITE then automatically calculates the number of hours you were at the destination for each calendar day of your trip.
• For each day, the system matches your hours to the appropriate time slab and applies the corresponding percentage to the daily per diem rate. The final per diem amount is the sum of these daily calculations.

Let's consider an example: Imagine you visit New York, where the daily per diem rate is $100. Your company has configured that for up to 6 hours at the destination, you receive 25% of the daily rate, and for more than 6 hours (up to 24 hours), you receive 100%.

If your trip details are:

• Day 1: Arrive at 6 PM, spending 6 hours at the destination.
• Day 2: Stay for a full 24 hours.
• Day 3: Depart at 6 AM, spending 6 hours at the destination.

Here's how ITILITE calculates your per diem:

• Day 1 (6 hours): 25% of $100 = $25
• Day 2 (24 hours): 100% of $100 = $100
• Day 3 (6 hours): 25% of $100 = $25

Your total per diem reimbursement would be $25 + $100 + $25 = $150.

You will see a clear breakdown of these calculations on your expense screen, showing the hours, percentage applied, and the amount for each day or segment of your trip.

Pro-Tips & Guardrails

The daily per diem rate itself is determined by your company for specific locations and may also have validity periods. The time-based percentages only determine what portion of that full daily rate is applied for each day of your trip.

Verification & FAQs

After entering your trip details, you can verify the per diem calculation by reviewing the "Per Diem Calculation Breakdown" section on your expense form. This section will show the hours, percentage applied, and the resulting amount for each day of your travel.