Frequently Asked Questions
Are there official per diem rates in Saudi Arabia?
Unlike some countries, the KSA government does not publish standardized per diem rates for private companies. Most businesses set their own daily allowances for meals and incidental expenses based on internal travel policies, destination costs, and employee grade levels. Some companies reference internal benchmarks or international guidelines when defining per diem budgets for business travel.
What is a typical per diem allowance for business travel in Riyadh?
Per diem allowances vary widely depending on the company and travel destination. For domestic travel within Saudi Arabia, companies typically provide a modest daily allowance to cover meals and small expenses. For international travel, per diem amounts are often adjusted based on the cost of living in the destination city. Higher allowances may apply for major business hubs such as London, New York, or Singapore.
Do Riyadh companies use per diem or reimburse expenses?
Both approaches are common. Some organizations provide a fixed daily per diem allowance so employees can manage their own meal and incidental expenses without submitting receipts. Others require employees to submit receipts and reimburse the actual amount spent. Per diem policies are often preferred because they simplify accounting and reduce administrative work for finance teams.
What expenses does a per diem typically cover?
Per diem allowances usually cover small daily expenses incurred during business travel. These commonly include meals, local transportation such as taxis or metro fares, tips, and minor incidental costs. Larger travel expenses such as flights, hotels, and conference fees are usually paid directly by the company rather than being included in a per diem allowance.
What's the difference between a per diem and a living allowance?
Per diem rates are designed for short-term business travel — typically trips under 30 days. For longer assignments, such as a six-month project in Riyadh or a multi-year regional posting in Abu Dhabi, companies typically switch to a cost-of-living allowance (COLA) or expatriate package instead. These are structured differently: they factor in housing, schooling, home leave flights, and hardship premiums, and are benchmarked against data from specialist mobility firms rather than daily travel rate surveys. If you're managing a longer posting, our calculator can still be useful for the initial mobilisation period and short business trips made during the assignment, but it shouldn't be used as the basis for a full expat compensation package.
Do UAE companies provide different per diem rates for different employee levels?
Yes. Many companies define different per diem allowances depending on the employee’s role or seniority. For example, senior executives may have higher daily allowances compared to junior staff, particularly for international travel. These policies are usually defined in the company’s travel policy to ensure fairness and consistency across the organization.
