Per Diem Allowance and Kilometre Allowances 2021
Per diem allowance
Per diem, i.e. daily allowance means coverage for a reasonable increase in meal expenses and other living expenses incurred by the employee during business travel. Thus, per diem does not include allowance for travel expenses proper or accommodation expenses.
The maximum amount of accommodation compensation paid for a business trip in addition to per diem is the amount stated in the receipt or other reliable statement given by the place of accommodation.
The maximum amount of accommodation compensation paid for travelling to a secondary workplace is the amount stated in the receipt given by the place of accommodation or a reasonable amount based on another reliable statement.
Depending on the duration of a business trip, the maximum per diem amounts are the following:
- Partial per diem: €20,00 (trips longer than 6 hours)
- Full per diem: €44,00 (trips longer than 10 hours)
And, if travel time exceeds the last full day of travel:
- by at least 2 hours, €20
- by more than 6 hours, €44
Per diem is payable only for such a day when the temporary place of employment is located more than 15 Kms away from either the employee’s main or regular workplace or his home, depending on where the travel begins. Moreover, the temporary place of employment should be more than 5 Kms away both from the main or regular workplace and from home.
For any day of travel, when the employee receives free meals, or meals included with the travel ticket, the maximum per diem is half the amount specified above. Free meals comprise two free meals in the case of full per diem, and one free meal in the case of partial per diem.
Meal money can only be paid if no per diem is being paid, and the work assignment prevents the employee from having a meal at his normal eating-place during his meal break. The maximum amount is confirmed as €11.00.
If the employee has to have two meals at a place other than his normal eating-place during a business trip and no per diem is being paid the maximum meal money equals €22.00. Compensation paid for travelling or accommodation will not be included in the per diem.
An allowance for night travel is payable only if at least 4 hours (during a day of travel for which the employee is entitled to a per diem) are between the hours of 09:00 PM and 07:00 AM and if the employer does not arrange any free accommodation for the employee or pay him allowance for accommodation or for a sleeping-car berth. The maximum allowance for night travel is €13.00.
The maximum allowance for an employee’s business travel using a means of transport owned or held by him shall be:
|| Maximum compensation
44 cents per kilometre plus:
- 7 cents per kilometre for transporting a trailer attached to the car
- 11 cents per kilometre when the work requires transporting a caravan attached to the car
- 22 cents per kilometre when the work requires transporting a worksite rec room or a similar heavy cargo attached to the car
- 3 cents per kilometre for machines or other equipment that weigh more than 80 kg or are very large and need to be transported in the car
- 3 cents per kilometre if the wage earner transports a dog in the car due to their work duties
- 9 cents per kilometre when the work requires driving a car on a forest road or on a road building site closed off from other traffic for those specific kilometres
|76 cents per kilometre
|111 cents per kilometre
||106 cents per kilometre
| Quad bike
||99 cents per kilometre
||33 cents per kilometre
||18 cents per kilometre
| Other vehicle
||10 cents per kilometre
If other people travel in a vehicle owned or controlled by the wage earner and their transport is the responsibility of the employer, the maximum amounts of the aforementioned compensations are raised by 3 cents per kilometre for each person travelling in the vehicle.
If a wage earner who has been allocated a company car benefit in the division of the Finnish Tax Administration concerning the calculating principles of fringe benefits uses such a car to commute and personally pays for the fuel expenses caused by this distance, the maximum amount of fuel expenses compensated to them is 10 cents per kilometre.