Per Diem Rates

Per Diem Rates 2021

The per diem rates are updated by the General Services Administration (GSA) every October. Although the GSA is mostly responsible for storing, distribution, and disposing personal property and supplies and generally manages the basic functions of the other federal agencies, per diem rates are announced by the agency.

The new effective rates for 2021 will be released this October. Then the new per diem rates will be as announced until September 2021. Since the per diem rates are released from October to September, you cannot get a full list of the rates for throughout 2021. For that, you must wait for October 2021 to arrive so you know the rates for November and December.

Different Kinds of Per Diem From October 2020 to September 2021

While this applies to the lodging, the per diem for meals and incidentals are not updated the same way. Usually, the rates for the meals and incidentals are going to be updated when the cost of living in that area changes. This generally happens at the start of the year since the inflation rate is known then.

The bottom line here is the per diem rates for 2021 hasn’t been out yet. Given the expected 2% inflation and minor changes to the cost of living, the per diem rates are likely to be at a similar rate compared to the previous year. Once the GSA releases the per diem rates for meals/incidentals and lodging, we will keep you updated.

Want to learn more about the per diem and what it actually refers to? Read this article to get the further details on the taxable portion of per diem, employer reimbursement limits, whether an employee can keep per diem or not, etc.

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