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What is an allowance claim?

An allowance claim in travel expense management is a request by an employee for a fixed daily amount provided by the employer to cover expenses incurred during business travel. This daily allowance, often referred to as "per diem," covers costs like meals, lodging, and incidental expenses without the need for detailed receipts for each expense.

Key Points:

  1. Purpose: To provide employees with a predetermined daily amount for travel-related expenses.

  2. Categories: Typically includes meals, lodging, and incidental expenses.

  3. Documentation: Requires minimal documentation, usually just proof of travel dates and destinations.

  4. Submission: Employees submit a claim for the allowance, often through travel expense management software.

  5. Approval: Reviewed by supervisors to ensure travel occurred and aligns with company policies.

  6. Reimbursement: The fixed daily amount is paid to the employee after approval.


An employee travels for three days with a per diem allowance of $100 per day. The allowance claim would be $300, covering all eligible expenses without detailed receipts for each expenditure.

Allowance claims simplify the reimbursement process by providing a standard amount for daily expenses, reducing the administrative burden on both employees and employers.

If you would like to discover how to perform several of the tasks regarding allowance, including how an expense report can be created, kindly check the articles below. Also, if you want to expand even more the knowledge in terms of compliant and legal allowance rates within your country, please check the Compliance Center as well:

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