Understanding Per Diem

“Per Diem” (Latin phrase meaning “per day”) is a daily allowance that is paid to UNM Faculty, Staff and Students while traveling on official University business.  In most cases, “Per Diem” basically constitutes a “meal money” allowance for University travelers, but it can occasionally also include lodging if the Flat Per Diem method is chosen (Not common - see #2 “Flat Rate Per Diem Allowance” below). 

Per Diem and all travel expenses to be reimbursed are paid to UNM Travelers on their Travel Reimbursement, which is processed by the Traveler or a member of the Traveler’s support staff in the Chrome River system after the conclusion of travel.  Receipts are not required to be submitted on a Travel Reimbursement for any amounts paid as Per Diem.  Instead, the amounts are keyed and calculated on the Travel Reimbursement in Chrome River using the Meals/Per Diem Wizard tile. 

NOTE:  UNM Faculty, Staff and Students who are traveling on official University business are entitled to their designated Per Diem allowance only, no more, no less.  Some travelers may choose to spend less and pocket the difference, others may choose to spend more, but at their own expense.     

2 Types of Per Diem used at UNM:

 1)  Meal Per Diem Allowance with Actual Lodging paid/reimbursement (most commonly used method)

Under the Meal Per Diem method, UNM Travelers are paid a daily Meal & Incidental allowance which is intended to cover all meals plus incidentals (i.e. tips for bellhops & laundry, etc).  Under this method, actual lodging expenses are either paid by P-Card or reimbursed directly to the traveler, but not paid to the traveler as Per Diem.  The Meal Per Diem amount varies by travel location. Receipts are not required for meals & incidentals paid with Per Diem.  Meal Per Diem rates by travel destination are pre-programmed into Chrome River under the Meals/Per Diem Wizard tile.

• In-State Travel – For travel within New Mexico, UNM travelers are entitled to the Meal Per Diem rates published by the New Mexico Department of Finance and Administration, aka DFA Rate.

• Out-of-State Domestic Travel – UNM Travelers are entitled to the Meal & Incidental rates published by the U.S Department of General Services Administration, aka “GSA Rate.”

• International Travel – UNM Travelers are entitled to the Meal & Incidental rates published by the U.S. Department of State.

 2)  Flat Per Diem Allowance (seldom used method)

Under the Flat Per Diem method, UNM travelers are paid a daily Per Diem allowance that combines both a meal per diem rate with an additional lodging rate.  The UNM traveler is entitled to this Per Diem method regardless as to whether actual overnight lodging expenses are directly incurred or not.  This method is most commonly used when a UNM Traveler chooses to stay with family/friends while away on their business trip.  Flat Per Diem rates by location are pre-programmed into Chrome River under the Meals/Per Diem Wizard tile.  Unchecking the “Lodging box” will add the lodging rate to the Meal per Diem rate.

• In-State Travel – For travel to destinations within New Mexico, travelers are entitled to the Per Diem rates published by the New Mexico Department of Finance and Administration (DFA Travel Rate).

• Out-of-State Domestic Travel - Uses the combination of meal and lodging rates published by the U.S General Services Administration, aka “GSA Rate”

• International Travel – UNM Travelers are entitled to the rate published by the U.S. Department of State.

 **Please note that on the final day of travel, the traveler cannot use Flat Per Diem since Flat Per Diem rates include a payment for daily lodging, and there would be no actual lodging expense on a traveler’s return date.  A traveler using Flat Per Diem would instead use Meal Per Diem for their return date.

Other Per Diem Notes:

• Per Diem is paid ONLY after the conclusion of Travel. Per UNM Travel Policy 4030 section 12, all Travel expenses including Per Diem cannot be reimbursed to University travelers until after the conclusion of travel.  Per Diem or other travel expenses cannot be paid/reimbursed to the traveler in advance of travel.

• Travel Day Meal Per Diem Reduction – Consistent with Federal regulations, Meal Per Diem (or the meal portion of Flat Per Diem) is reduced to 75% of the rate on departure and return days (aka Travel Days), regardless of departure/arrival time.

• Meal Per Diem may only be used for travel meals not otherwise provided - A UNM Traveler is NOT entitled to Meal Per Diem for any meals that are otherwise provided to them during their travel. Examples include meals provided at conferences, group business meals whether paid by UNM or anyone else.  For conference travel, a conference agenda is required to be included with the employee’s travel reimbursement in order to substantiate provided meals vs meals eligible for per diem payment. 
  • Exception – A UNM Traveler is entitled to Meal Per Diem when a provided meal at a conference, etc, is not suitable due to medical, dietary or religious reasons. Documentation of the restriction must be included in the Chrome River Travel Reimbursement.

• Per Diem is available for business portion of travel only – When personal travel is combined with business travel, the UNM Traveler is only entitled to Per Diem (or any other business/travel expenses) for the business portion of travel.

• Same day travel Meal Allowance – Consistent with IRS regulations, Meal Per Diem for same-day travel that does not include an overnight stay is taxable to the UNM traveler and will be reported to UNM Payroll to be included on the employee’s W-2 tax form as additional compensation. Same-day Meal Per Diem is also subject to the standard 75% Travel-day reduction.

• Non-Employees and Per Diem – Generally speaking, Per Diem allowance is intended for UNM Faculty, Staff and Students and is not necessarily intended for non-employee travelers, such as recruits, guest speakers, vendors/contractors, etc.   

For more information on Per Diem or Allowable/Unallowable UNM Travel Expenses, please see UNM Policy 4030:  Travel.