France Per diem

Employers in France can grant their employees a tax-free allowance for both domestic and foreign business trips. This allowance is meant to cover the costs incurred by the employee for food and accommodation throughout their trip. This allowance granted to the employee by the employer is not taxed.

For an employee to be granted a per diem for long-distance trips, they must be unable to return to their residence each day given their work location. For them to be eligible to receive a per diem, these two conditions must be met:

• The distance between their place of residence and their place of work is greater than or equal to 50 km, one way;
• Public transport does not allow this distance to be covered in less than 1h30, one way.

Employees who frequently incur travel expenses are not required to provide evidence for all of their expenditures. However, to determine the number of days they spent on their trip, accommodation expenses, and travel costs, certain documents are always necessary:

• To prove an employee’s amount of annual travel, a list of the regions visited, sufficient hotel bills, and employer certificates stipulating the conditions of the trip must all be provided;
• To determine accommodation expenses, hotel bills must be provided (at least for lengthier trips).

Allowances intended to compensate for additional business travel expenses in mainland France:

The amounts in the table above are applicable for a travel period of 3 months. For travel that exceeds 3 months but lasts less than 24 months, the amounts are reduced by 15% from the first day of the 3rd month. For travel that exceeds 24 months but lasts less than 4 years, the amounts are reduced by 30% from the first day of the 25th month.

* €150 (before 22 Sept. 2023: €120) for an employee recognised as a disabled worker and who is in a situation of reduced mobility.

The amounts in the table above are applicable for a travel period of maximum 3 months. For travel that exceeds 3 months but lasts less than 24 months, the amounts are reduced by 15% from the first day of the 3rd month. For travel that exceeds 24 months, the amounts are reduced by 30% from the first day of the 25th month.

The allowance granted to employees while travelling internationally varies from country to country, you can check the specific amounts at the end of this article.

The table lists the daily allowance granted to employees travelling on foreign business trips based on the country they are travelling to. The allowance given to an employee travelling internationally must be reduced by:

• 65% when the employee is housed free of charge, (for example, when the employer provides an accommodation or pays for accommodation);

• 17.5% when the employee has one of their meals paid for;

• 35% when the employee has both of their meals paid for.

The allowances are applicable for a travel period of 3 months. For travel that exceeds 3 months but lasts less than 24 months, the amounts are reduced by 15% from the first day of the 3rd month. For travel that exceeds 24 months but lasts less than 4 years, the amounts are reduced by 30% from the first day of the 25th month.

Foreign business trips: list of per diem rates (as of 26 April 2023)

Source: Arrêté du 3 juillet 2006 fixant les taux des indemnités de mission prévues à l’article 3 du décret n° 2006-781 du 3 juillet 2006 fixant les conditions et les modalités de règlement des frais occasionnés par les déplacements temporaires des personnels civils de l’Etat