Per Diems for official travel in the country: Rights and Obligations

Business trips are an integral part of many companies’ operations, and with them come certain rights and obligations for both employees and employers. To ensure the process complies with the law and avoids complications, it is important to understand how daily allowances are calculated and how expenses are reimbursed.

WHAT IS A BUSINESS TRIP WITHIN THE COUNTRY?

A domestic business trip refers to travel carried out by an employee on the employer’s order, for the purpose of performing a business task, at a distance greater than 30 km from the place of work.
Before departure, the employer is obliged to issue a business trip order to the employee.

PER DIEMS FOR BUSINESS TRAVEL

A per diems is paid to the employee as compensation for expenses not covered by other forms of reimbursement (accommodation, transport).

• Per diems amount: €18 (20% of the calculation coefficient value set by the Government of Montenegro).
• Calculation depends on the duration of the trip:
• 12 to 24 hours → full daily allowance,
• 8 to 12 hours → half daily allowance,
• up to 8 hours → no allowance is paid.

ACCOMMODATION COSTS

Accommodation expenses are recognized in the amount stated on the hotel invoice, which must include overnight stay with breakfast.

If the employee does not submit a hotel invoice, accommodation costs will not be reimbursed.

TRANSPORT COSTS

• If the employee uses public transport – a ticket must be provided as proof.
• If a company vehicle is used – a travel order with route and mileage details must be kept.

EMPLOYEE OBLIGATIONS AFTER RETURN

Upon return from a business trip, the employee is required, within three days, to:

1. Submit a calculation of travel expenses with supporting documentation (transport and accommodation receipts),
2. Provide a report on the business trip,
3. Return the validated business trip order.

Why is this important?

Proper record-keeping and calculation of business trip expenses is important not only for legal compliance but also for transparent and efficient business operations.

At Perfectum, we provide support in:

• calculating daily allowances and travel expenses,
• preparing and reviewing documentation,
• advising employers and employees on their rights and obligations.

This way, business trips become clear and simple – without administrative burdens.