{"id":51025,"date":"2026-09-02T11:03:25","date_gmt":"2026-09-02T11:03:25","guid":{"rendered":"https:\/\/www.you.co\/biz\/?p=51025"},"modified":"2026-09-02T11:03:25","modified_gmt":"2026-09-02T11:03:25","slug":"per-diem-allowance","status":"publish","type":"post","link":"https:\/\/www.you.co\/biz\/blog\/per-diem-allowance\/","title":{"rendered":"Per Diem Allowance Singapore: IRAS 2026 Rates & How to Set One"},"content":{"rendered":"\n

A per diem is a flat daily travel allowance, and IRAS publishes a rate for every country that decides how much of it stays tax-free.<\/strong><\/h2>\n\n\n\n
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Per diem<\/strong> is Latin for “by the day”. In Singapore, it means the fixed daily amount a company pays an employee travelling overseas for work, instead of asking them to keep every receipt and claim the cost back afterwards. IRAS defines it<\/a> as the daily allowance given to employees on overseas trips, either out of Singapore or into Singapore, for business purposes.<\/p>\n\n\n\n

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The allowance is meant to cover living costs on the trip: meals, local transport, and incidentals like laundry. It doesn’t cover the flight, the hotel booked by the company, or the visa.<\/p>\n\n\n\n

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The number that matters is the IRAS acceptable rate<\/strong>. IRAS publishes one rate per day for every country and region<\/a>, and updates it annually. Pay at or below your destination’s rate and the allowance isn’t taxable to your employee, and you don’t report it in their IR8A. Pay above it and only the excess becomes taxable income.<\/p>\n\n\n\n

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For 2026 the rate is S$155 a day for Japan<\/strong>, S$85 for Malaysia<\/strong>, S$195 for the United Kingdom<\/strong> and S$175 for Singapore<\/strong> (the last one applies to overseas staff travelling in). These are published in Singapore dollars, so there’s no conversion step. One point that catches employers out: IRAS’s rates are strictly for income tax. They aren’t a cap on what you’re allowed to pay.<\/p>\n\n\n\n

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Quick Answers: Rates, Tax, CPF and Records<\/strong><\/h2>\n\n\n\n
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Question<\/strong><\/strong><\/th>Short Answer<\/strong><\/strong><\/th><\/tr><\/thead>
What is a per diem allowance?<\/strong><\/td>A fixed daily amount paid to an employee on an overseas business trip, in place of claiming actual expenses back receipt by receipt.<\/td><\/tr>
Is it taxable in Singapore?<\/strong><\/td>Only the portion above the IRAS acceptable rate for that country. Anything at or below the rate is not taxable and is not reported in IR8A.<\/td><\/tr>
Where do I find the rate?<\/strong><\/td>IRAS publishes a country-by-country table each year. For 2026 it runs from S$30 (Tokelau Islands) to S$230 (Bermuda).<\/td><\/tr>
Is per diem CPF-payable?<\/strong><\/td>Yes, if you pay it as a lump-sum allowance. No, if you reimburse actual expenses incurred for official purposes.<\/td><\/tr>
Does MOM set the amount?<\/strong><\/td>No. There is no statutory per diem in Singapore. The amount is your company’s decision.<\/td><\/tr>
Do employees need receipts?<\/strong><\/td>Not for the allowance itself. You still need records showing the trip was genuine and business-related.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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The most common error isn’t overpaying. It’s assuming the American rule applies. Most of what is published online about per diem describes United States IRS and GSA practice, where a within-rate per diem is treated very differently. Singapore has its own table, its own thresholds, and a CPF question the US material never raises.<\/p>\n\n\n\n

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Table of Contents<\/strong><\/h2>\n\n\n\n
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  1. What Per Diem Means<\/strong><\/a><\/li>\n\n\n\n
  2. Per Diem vs Reimbursing Actual Expenses<\/strong><\/a><\/li>\n\n\n\n
  3. The Other “Per Diem”: Shift-Based Work<\/strong><\/a><\/li>\n\n\n\n
  4. What Per Diem Covers and What It Doesn’t<\/strong><\/a><\/li>\n\n\n\n
  5. Is Per Diem Allowance Taxable in Singapore?<\/strong><\/a><\/li>\n\n\n\n
  6. Does Per Diem Count for CPF?<\/strong><\/a><\/li>\n\n\n\n
  7. Is Per Diem an IRAS Matter or a MOM Matter?<\/strong><\/a><\/li>\n\n\n\n
  8. IRAS Acceptable Rates for 2026<\/strong><\/a><\/li>\n\n\n\n
  9. What Changed from the 2025 Rates<\/strong><\/a><\/li>\n\n\n\n
  10. How to Calculate Per Diem for a Trip<\/strong><\/a><\/li>\n\n\n\n
  11. How to Handle Travel Days and Part Days<\/strong><\/a><\/li>\n\n\n\n
  12. How to Set a Travel Allowance for Your Team<\/strong><\/a><\/li>\n\n\n\n
  13. How to Pay a Per Diem Out<\/strong><\/a><\/li>\n\n\n\n
  14. Common Per Diem Mistakes<\/strong><\/a><\/li>\n\n\n\n
  15. What to Record for a Per Diem Trip<\/strong><\/a><\/li>\n\n\n\n
  16. FAQs<\/strong><\/a><\/li>\n<\/ol>\n\n\n\n
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    What Per Diem Means<\/strong><\/h2>\n\n\n\n
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    A per diem is a fixed daily sum paid to an employee for an overseas business trip, set in advance and paid whether or not they spend all of it.<\/p>\n\n\n\n

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    It exists to remove admin. Reviewing a stack of receipts for a S$14 airport coffee and a S$9 taxi costs your finance lead more time than the amounts justify. A per diem replaces that with one number per day.<\/p>\n\n\n\n

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