What is "long term period" in regards to the per diem?

Hi Anil,

Thanks for sharing the above information, it is very informative. I have a query in regards to the per diem for long term. Is there any rule/law which says what is a long term period. I mean you mentioned long term assignments are generally more than 3 months. I am asking this because I am placed on a long term more (currently it is more than 2 years). My employer is paying me salary in Indian Rupees and Per Diem for the period of my stay here. I am impacted only when I go on annual leave. When I ask about the salary raise he says I am already paid high salary (showing the Indian salary plus per diem) but when it comes to my paid annual leave, he doesn’t pay the per diem saying you are on leave so per diem is not applicable. My combined monthly salary (indian salary + per diem) is way less than what others get if they are paid only the international salary.

I wanted to know if there is any Indian Law which states Per Diem is applicable only for short term travel less than 3 months. Also what should be the minimum Per Diem to be paid when a person is deputed to work with their client in Middle East.

Thanks

Hi Raj,

I am not an expert in the labor laws but the per diem cases are mostly governed by the country you are visiting.

You are getting your Indian pay + per diem implies that your company has NOT transferred you to their Middle east branch. You are still the employee of their Indian branch. Per diem is paid when a company sends you to different location (can be within India also) than your base location.

For example, in case of USA, they do not allow a person on business visa (getting per diem) for more than 3 months at a stretch. hence, a company who wants their employee to work in USA for more than 3 months, has to transfer it to their American branch. Once transferred to the specific country’s branch, you are governed by their labor laws.

That’s the difference.

Your company is probably still paying per-diem for saving money in middle east. Or they might not have their branch at all there. What is the case with you?

Unfortunately, I am not aware of the per diem rates in Middle east.