Per diems for official business travel abroad: A guide for employers and employees

When it comes to organizing official business trips abroad, it is important for both employers and employees to understand their rights and responsibilities. 

In this blog we will explain the essential information regarding business trips, such as per diems, accommodation and transportation expenses, and more.

WHAT IS AN OFFICIAL BUSINESS TRIP ABROAD?

An official business trip abroad is defined as a trip from Montenegro to a foreign country and vice versa. During this travel, employees are entitled to per diems, reimbursement for accommodation costs with breakfast, and transportation expenses.

PER DIEMS FOR BUSINESS TRAVEL

The amounts of per diems for official business trips abroad are established in a list of countries with the corresponding per diem amounts.

ACCOMMODATION COSTS

Accommodation expenses abroad are reimbursed according to the paid hotel bill, which includes overnight stay and breakfast. If the employee does not submit an accommodation receipt, these costs will not be recognized.

TRANSPORTATION COSTS

Transportation expenses abroad are recognized based on submitted receipts for public transportation (bus or metro). The costs for taxi transportatio are reimbursed in full upon presentation of a receipt, with prior approval from the supervisor or an authorized representative. It is also important to note that if the employee does not submit receipts, transportation costs will not be reimbursed.

PER DIEM CALCULATION

Per diems for business travel are calculated as follows:

• Every 24 hours spent on a business trip is counted as one full per diem.
• Time spent on a business trip between 12 and 24 hours is counted as one full per diem.
• Time spent on a business trip between 8 and 12 hours is counted as half of a per diem.
• Time spent on a business trip up to 8 hours is not eligible for a per diem.

MEALS AND PER DIEMS

• If only accommodation without meals is provided during the business trip abroad, the per diem is paid in full.
• If meals (lunch and dinner) are provided during the business trip abroad, the per diem is reduced by 60%.
• If one meal (either lunch or dinner) is provided during the business trip abroad, the per diem is reduced by 40%.

WHEN ARE EXPENSES NOT RECOGNIZED?

If transportation, accommodation, meals, and a specific monetary allowance are provided by the organization that issued the invitation, the employee is not entitled to any reimbursement for business travel expenses abroad.

PROCEDURE AFTER THE TRIP

The employee is required to submit a travel expense report to the supervisor or an authorized representative within seven days from the return date of the business trip abroad. The business travel report should include:

• Bill for accommodation
• Ticket or bill for public transportation
• Report on the business trip
• Copy of the invitation letter, if such a letter was issued to the employee.

List of countries with corresponding per diem amounts: