A practical, everything-you-need-to-know guide in the Philippine setting. General information only, not legal advice.

1) What “per diem” actually is

“Per diem” is a daily travel allowance paid to an employee or official to defray meals, lodging, and incidental expenses (M&IE) while on authorized official business away from the permanent station. In practice, per diem policies in the Philippines fall into two broad families:

Government service – rules are standardized (Executive/DBM/COA issuances).
Private-sector/GOCCs with corporate charters – rules are internal (company or board-approved manuals) but still constrained by labor, tax, and anti-graft (for public entities) laws.

Across sectors, one core principle is constant:

You only get per diem for the part of subsistence that you personally have to pay for. If meals and/or lodging are provided at no cost by the host, sponsor, or training, the corresponding component of per diem is reduced or disallowed under most policies.

2) Eligibility conditions (common to most Philippine policies)

You’re generally eligible for per diem if:

The travel is officially authorized (written travel order/engagement letter).
The destination is outside your permanent official station (often defined by city/municipality).
The trip has a business purpose (conference, meeting, field work, training).
The duration meets any stated minimum (e.g., more than half-day for certain M&IE rules).
You observe itinerary compliance (actual dates/places align with the authority to travel).

Not eligible / typically disallowed:

Local errands within the same city office radius when policy defines no “travel” status.
Personal side trips or extensions.
Double-dipping (claiming per diem and getting reimbursed for the same meal/lodging).
Periods on leave during the trip.

3) The building blocks: how per diem is structured

Most Philippine per diem frameworks separate:

Lodging – hotel/quarters expense or a lodging per diem/ceiling;
Meals & Incidentals (M&IE) – a daily fixed amount for breakfast/lunch/dinner plus incidentals (tips, local transit, water).

That split matters because reductions apply per component if any part is provided free.

4) When meals and/or accommodation are provided

A) Lodging provided (free quarters)

Government: Lodging portion is not claimable (or capped at zero) for the dates with free quarters. M&IE may still be allowed.
Private: Most policies zero-out lodging and pay M&IE only. Some companies pay a reduced per diem (e.g., M&IE flat rate).

B) Some meals provided (e.g., conference gives lunch and dinner)

Per diem is reduced by the meals provided. Many handbooks specify meal weights (illustration only):
- Breakfast = 20–25% of M&IE
- Lunch = 30–35% of M&IE
- Dinner = 35–40% of M&IE
- Incidentals = small fixed slice (e.g., 5–10%) Your actual policy’s percentages control; apply them to compute the reduction.

C) All meals provided (full board)

Only incidentals (if your policy carves these out) may be payable; otherwise no M&IE.
If both full board and lodging are provided, per diem is typically nil for those dates.

D) Hosted banquets/receptions

If the event includes meals (and you actually attended), deduct the corresponding meal(s) even if the program does not explicitly label them “free.”

E) Partial-day travel

Some rules pay fractional per diem for departure/return days (e.g., 50% or meal-based proration).
If a breakfast is part of the hotel package you didn’t pay for, deduct breakfast even on a fractional day.

Practical rule of thumb: If you didn’t pay out-of-pocket, don’t claim that portion.

5) Documentation & proof (to keep you compliant)

Always keep:

Travel authority (TO), approved itinerary, and conference/training memo showing which meals/quarters are provided.
Boarding passes / tickets / bus receipts to show dates and times.
Hotel folio (if you paid lodging).
Attendance certificate (for training).
Liquidation: Even for per diem (a flat rate), many entities still require a liquidation form indicating which meals were provided and which nights were in free quarters.

For private sector & tax: Use an accountable plan—employees submit time/place/business purpose, proof of travel, and certify any provided meals/lodging. This keeps legitimate per diem non-taxable (see §8).

6) Special cases

A) Training with “live-in” package (common with government-hosted seminars)

“Live-in” usually means lodging + full board are included. Result: No lodging per diem and meals deducted; some policies allow a token incidentals amount only.

B) Live-out option

If you opt to live out (stay offsite) when free quarters are available, many policies won’t reimburse your chosen hotel—or will cap it and still deduct provided meals. Check the authorization before you book.

C) Sponsored foreign travel

If the sponsor pays the hotel and gives a daily meal stipend, your home entity typically does not pay overlapping per diem. At most, it may top-up incidentals if allowed.

D) Group travel & shared rooms

If the entity books & pays twin-sharing rooms, the lodging component isn’t claimable by travelers. If you upgrade to solo room at your option, the difference is usually personal.

E) Extended stay/weekend gap

When official business pauses (e.g., weekend between meetings), payment varies:
- If staying is necessary and authorized, per diem/M&IE may continue (subject to meals/lodging actually provided).
- If worker chooses to sightsee or personal-stay, per diem stops for that period.

7) Computation blueprint (use your policy’s numbers)

Start with the authorized daily per diem (or M&IE + lodging split).
Strike out lodging for nights with free quarters.
Deduct the % value of each provided meal from the M&IE.
If policy allows incidentals as a standalone slice, leave that in (unless also provided).
Apply fractional rules for travel days if your policy has them.
Check caps/ceilings (e.g., maximum daily limits, city categories).
Round and total by day; attach the meal/quarters matrix to your liquidation.

Mini-matrix you can copy:

Date	Breakfast	Lunch	Dinner	Lodging	Provided? (Y/N)	Claimable notes
Day 1 (Depart)	N	Y (conf.)	N	N	–	Deduct lunch only
Day 2	Y	Y (conf.)	Y (conf.)	Y (hotel paid by host)	All meals + lodging provided	Possibly incidentals only
Day 3 (Return)	N	N	–	N	–	Fractional per diem rules

8) Tax treatment (Philippine context)

Non-taxable to the employee if per diem and travel allowances are ordinary and necessary business expenses under a bona fide (accountable) plan, i.e., the employee substantiates time, place, and business purpose, and returns any excess.
Taxable (as compensation/fringe benefit) if:
- Paid without substantiation;
- Exceeds policy/ceiling and excess is not returned;
- Duplicative (employee also reimbursed meals/lodging that were provided for free).
For employers, only substantiated travel/per diem is deductible as a business expense.

Key practice: Your liquidation should disclose provided meals/lodging. Paying full per diem on days with full board risks disallowance (for government) or taxable income (private sector).

9) Governance & controls (what auditors look for)

Written policy: defines per diem rates, city categories, fractional rules, and meal/lodging deductions.
Pre-approval: travel order with purpose and funds availability.
Evidence: tickets, attendance certificates, hotel folios (if applicable), program that shows host-provided meals/quarters.
No double-dip: system flags when per diem and hotel direct-billing overlap.
Cut-off discipline: liquidation within set days after return; unliquidated advances are collectible.

10) Frequently asked questions

Q: If breakfast is “free” with the hotel but the hotel was paid by my agency, do I still deduct breakfast? A: Yes. If your lodging was provided (i.e., not out-of-pocket), meals bundled with that lodging are also considered provided and must be deducted.

Q: The training said “snacks and lunch provided.” Can I still claim full M&IE? A: No. Deduct lunch (and sometimes snacks if your policy treats them as part of M&IE). Breakfast/dinner remain claimable unless also provided.

Q: We received meal coupons but I didn’t use mine. A: If a meal is made available at no cost, policies usually treat it as provided, whether or not you chose to eat elsewhere.

Q: Host paid for hotel, but I moved to a different hotel. A: Personal choice. You typically cannot claim lodging (and may need to shoulder the difference). M&IE deductions for provided meals still apply.

Q: Can a flat per diem be taxed? A: Yes—if unsubstantiated or paid despite provided meals/lodging (i.e., effectively an allowance), it can be taxable. Keep to an accountable plan.

11) One-page action plan

Read your policy (rates, splits, meal weights, fractional rules).
Before travel: secure written travel authority; confirm which meals/quarters the host will provide.
During travel: keep a meal/quarters matrix; collect tickets and event schedules.
After travel: compute per diem with proper deductions; submit liquidation on time.
For approvers: verify purpose, dates, host-provided benefits, and math; ensure no double-dipping.

12) Model policy clause (you can adapt)

Per Diem Reductions. The daily per diem comprises Lodging and M&IE. When lodging is provided at no cost to the traveler, the Lodging component is not payable. When meals are provided at no cost, the M&IE component shall be reduced by 25% for breakfast, 35% for lunch, and 35% for dinner; 5% is reserved for incidentals and remains payable only if not otherwise provided. On travel departure/return days, a 50% M&IE applies unless otherwise authorized. The traveler shall disclose all host-provided meals and quarters in the liquidation.

(Replace percentages with your official weights.)

If you share your sector (government/GOCC/private), whether the host provides hotel/which meals, and your policy’s per diem/M&IE split, I can convert this into a filled-out computation sheet and a liquidation-ready matrix for your trip dates.