Is per diem the same as overnight allowance?

No. Per diem is calculated per hour away from base and covers meals and incidentals. Overnight allowance is a separate fixed payment per night spent away from base. Some airlines pay both, some combine them into a single away-from-base rate.

Is crew per diem taxable?

Per diem is usually split into a non-taxable element, approved by the relevant tax authority as a reasonable expense reimbursement, and a taxable element above that approved rate. The split depends on your airline and your tax jurisdiction.

Crew Per Diem Guide: How It's Calculated

Per diem adds up fast, and it's one of the easiest pay components to lose track of because it accrues by the hour, not the duty. exactly how it's calculated, what's taxable, and how it differs from overnight allowance.

1. Per diem accrues hourly, from departure to return

Unlike duty pay, per diem doesn't stop when you're released from duty. It runs continuously from the moment you leave your base until you're back, covering rest time, layover hours, and standby time away from home, not just time on the clock.

2. Rates usually vary by region

Most airlines pay a different per diem rate depending on the country or region you're in, reflecting local cost of living. A 24-hour layover in one city can pay meaningfully more or less per diem than the same duration somewhere else.

3. Taxable vs non-taxable split

Tax authorities typically approve a per diem rate as a reasonable reimbursement for meals and incidentals, non-taxable. Anything your airline pays above that approved rate becomes taxable income. The approved rate and the airline's actual rate are not always the same number.

4. Per diem vs overnight allowance: not the same thing

Per diem is hourly and continuous. Overnight allowance is a fixed payment per night away from base, regardless of exact hours. Some airlines pay only one, some pay both, and some bundle them into a single "away from base" rate, check your airline's specific structure.

5. Common per diem errors

The most frequent mistakes are missed nights (a delay extends your trip but per diem isn't updated), wrong regional rate applied, and timezone miscalculations at the start or end of a trip that shift the accrued hours.

6. Track it automatically from your roster

Layvr's per diem tracker calculates accrued hours away from base directly from your imported roster and applies the correct rate, so you can spot a missing night before payroll closes the month.