What is Per Diem Pay and What Do You Need to Know About it?

Many truck driving companies will advertise that they offer “per diem pay,” which can leave some people scratching their heads as to what exactly that means. The term per diem is actually a Latin phrase meaning by day. Essentially, it is an alternative way to compensate you for daily expenses while on the road.

Traditional Reimbursement

Many employers will offer reimbursement of expenditures such as food and other incidental expenses. In this case, you would collect receipts and be paid back the money you spent on the road. However, not every expense may be covered, which is something you would want to discuss with your employer.

The Per Diem Option

Per diem, on the other hand, is pre-paid funds that would typically be included with your paychecks and it is essentially an IRS-backed reimbursement paid in advance. Some trucking companies will offer a flat-rate per diem by day while others will pay per diem on a per-mile basis. Currently, the federal limit for trucker per diem pay is 66 dollars each day. It is also mostly non-taxable income, which is one of the reasons why a lot of commercial truck drivers prefer it.

Find What Works Best for You

On the other hand, there are plenty of truckers who still prefer the reimbursement method or other forms of per diem. Not every driver may be eligible for per diem and every employer will treat per diem pay a little differently. It’s important to ask any truck driving company you might be working for about their expense reimbursement and/or per diem options. Understand how their system works and how it can benefit you.

To get started on your road to a successful career as a commercial truck driver or for resources to help take your career to the next level, contact America Truck Driving School today.