What does per diem mean in a job context?

In job descriptions, the term "per diem" indicates that the job pays on a daily basis. This term comes from Latin and directly translates to "by day." Per diem jobs often involve short-term contracts with a set daily rate and may require extensive travel, providing a daily stipend for expenses such as lodging and meals. While per diem pay may cost more for businesses, it saves time and effort in verifying receipts for travel expenses. Therefore, it is a common practice for companies with many employees who frequently travel.