Frequently Asked Questions
Are there official per diem rates in Singapore?
Singapore does not mandate a universal per diem rate for private companies. Most organizations define their own daily travel allowances within their internal travel policies. However, the Inland Revenue Authority of Singapore (IRAS) publishes guidelines for acceptable overseas subsistence allowances, which many companies reference when designing their travel policies.
What is a typical per diem allowance for business travel in Singapore?
Per diem allowances depend on the company’s travel policy, the employee’s role, and the destination city. For domestic business travel within Singapore, per diem allowances are usually minimal since the country is compact and travel expenses are relatively predictable. For international travel, companies often adjust daily allowances based on the cost of living in the destination city. Trips to high-cost cities such as London, New York, or Tokyo generally have higher daily allowances.
Are per diem allowances taxable in Singapore?
Per diem allowances for overseas business travel are generally not taxable if they are reasonable and used to cover legitimate travel expenses. The Inland Revenue Authority of Singapore provides guidance on acceptable subsistence allowances. If allowances significantly exceed these guidelines or are not tied to actual business travel, they may be treated as taxable income. Companies usually structure their travel policies to stay within these limits.
What is a per diem or daily allowance?
A per diem (Latin for "per day") is a fixed daily amount a company pays employees to cover meals, accommodation, and incidentals while travelling for work. Using a per diem rather than reimbursing actual receipts reduces administrative overhead and gives employees spending certainty.
Can I use these rates for freelancers, contractors, or guests?
Yes. Many companies in the GCC engage contractors and consultants on short-term assignments. Per diem structures are commonly used in these arrangements, and this calculator works equally well for employment contracts and independent contractor agreements.
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.
