HRSINGAPORE Community Discussions

Overseas Allowance


Dear HR Professionals,

Recently we asked an executive to accompany a sickly China employee back to his home town. He stayed in a hotel for one night paid by the company and his air ticket was also booked through the company. May I know how do you pay this executive for bringing the PRC worker home?

Do we just reimburse his transportation fees and meals will do or need to pay anything else? E.g. daily allowance? Or what is your practice? Please also advise the amount payable and what does it include.

Thank you for the advice.




Reply 1

If this executive has been asked by the company to accompany the sickly employee home, the company should reimburse him for transportation fees and give him the overseas allowance (per diem) for the "hardship" and cover meals and other personal expenses besides paying for the hotel and air tickets. If the company do not have any policy on per diem, you can check the IRAS website for acceptable rates for China and determine how much is reasonable. For us, we pay S$55/day.




Reply 2

We call it as per diem allowance. Company will book the flight ticket and hotel. Then, pay per diem allowance to the employee. Per diem allowance use to cover employee meal, transport and other related expenses. Per diem amount depends on the country. We pay $60 daily for China.




Reply 3

I think this is a very good gesture from the company to accompany a sick employee to ensure his safety. Other then air-ticket, accommodation, meals and transportation, there may be telecommunication? This is the standard payment for a short & straightforward trip. Reimbursement is based on receipts/actual expense paid.

Some the company has a per diem allowance policy, an allowance is paid according to the policy. If you would like to have a reference on per diem allowance, you may refer to IRAS website on taxable per diem, also note that the IRAS definition of per diem, it covers meals, transport.....etc.




Reply 4

You can consider paying per diem for his overseas period. And also to bear all the costs during his stay when he accompanies the employee back. The practice will depend greatly on what your company offers to your employees.

Hui Qin