Payhawk uses publicly available daily-based rates and custom automated logic to calculate per diem expenses, based on trip duration, destination, and provided meals.
The template Excel file with daily-based per diem rates is based on the official rates in countries such as Germany, Spain, and France that are set as default values and applied to these countries.
The daily-based template
The template contains the following columns:
Destination. This is the country or city where the employee is traveling to.
If the employee travels to several locations in one day, Payhawk takes the last location visited for that day and uses its rate.
If the employee selects a city for which there is no rate, Payhawk uses the country rate.
If the employee doesn't provide a specific city, Payhawk uses the country rate.
If the employee selects a country for which there is no rate, Payhawk uses the default Other rate at the bottom of the list.
The Payhawk system recognizes and supports a set of default cities rather than entire provinces.
Destination code. This is the three-letter code used to identify the destination country, followed by the city name.
Currency. This is the currency used for the per diem expense.
You can modify the currency column in the template to include either your account base currency or the local currency of the travel destination, and the system will automatically calculate the per diems, according to your preference.
If you choose the local currency, the system will take care of the currency conversion as well. Payhawk uses its internal exchange rate applicable on the creation date of the per diem expense.
If you don't choose a specific currency, the system will use your account base currency to calculate the per diem expense.
The system calculates the total amount of the per diem expense in your account base currency.
Half day. This rate is applied if the employee stays in a city between 8 and 24 hours. If your company does not use a separate rate for this duration, you can copy the values from the full-day rate column.
If your trip is between 8 and 24 hours but spans over two calendar days, then the First/Last day rates will be applied. For example, if you arrive at your destination today in the late afternoon and leave tomorrow at noon, today will be treated as the first day of your trip and tomorrow will be treated as the last day of your trip. Therefore, the First/Last day rates will apply to each day.
First/Last day. This rate is applied for the first and last day of the employee's trip. If your company does not use a separate rate for this duration, you can copy the values from the full-day rate column.
Full day. This rate is applied for all stays of a minimum of 24 hours.
When the business trip spans over two or more calendar days, the First/Last day and Full day rates will be applied as follows:
A two-day trip will require two First/Last day rates.
A three-day trip will require two First/Last day rates and one Full day rate.
Breakfast. Lunch. Dinner.
Some companies and countries use deductions. When meals are offered at no cost, paid with a corporate card, or when meals are provided as part of reimbursable travel or lodging, a percentage needs to be deducted from the allowance per calendar day - for example, a free breakfast supplied by the hotel where the employee is staying or a complimentary dinner offered at a conference.
For example, the deductible percentages from the full-day rate can be the following: breakfast - 20%, lunch - 40%, and dinner - 40%.