What is Per Diem Work? Meaning, Benefits, and How to Find It
Kapil Garg |
Updated: May 9, 2025
Kapil Garg |
Updated: May 9, 2025
Looking to break free from the 9-to-5 grind? In today’s evolving job market, per diem work has emerged as a compelling option for many. Notably, according to the market.us, the per diem nurse staffing market is experiencing rapid growth, projected to reach USD 16.4 billion by 2033, up from USD 8.7 billion in 2023 . This trend reflects a broader shift towards flexible employment arrangements across various sectors.
Whether you’re a healthcare professional, educator, freelancer, or HR manager, understanding the various nitty-gritty of per diem work can open new avenues for career advancement and work-life balance. This begs the question: “what exactly is a per diem job?”
| Quick Summary: Per diem work offers flexible, short-term job opportunities where employees are paid daily rather than salaried. This guide covers what per diem means, how it differs from part-time work, and its pros and cons for both employers and workers. You’ll also discover the industries that rely on per diem roles, how to find these jobs, and what to expect in terms of pay and tax treatment. Whether you’re exploring new income streams or managing a flexible workforce, this post helps you understand the full scope of per diem employment in 2025. |
In this blog, we’ll delve into per diem definition, discuss what is per diem work, explore its benefits, and provide practical tips on how to find such opportunities. Stay tuned to discover how per diem roles can align with your professional goals and lifestyle preferences.
Per diem means “per day,”( a Latin term) and in the modern job market, it refers to work arrangements where individuals are paid a daily rate rather than receiving a traditional salary or hourly wage. In per diem roles, employees are typically brought in on an as-needed basis—ideal for covering staff shortages, peak demand, or temporary assignments.
Common in industries like healthcare, education, and gig work, per diem jobs offer flexibility and competitive pay. Unlike full-time positions, these roles don’t always include benefits, but they provide greater control over your schedule and workload.
Per diem work refers to temporary, flexible job assignments where individuals are paid a daily or per-shift rate. These roles are typically not guaranteed on a regular basis and are offered as needed—often to fill in for absent staff or to manage short-term workload spikes.
Per diem workers are common in healthcare (like nurses and medical techs), education (such as substitute teachers), and freelance or gig-based roles. Unlike part-time or full-time employees who generally work in different types of work schedules, per diem workers usually don’t receive benefits like health insurance or paid time off, but they gain the freedom to choose when and where they work.
Now, that you have a clear understanding of per diem work meaning, let’s explore its benefits and disadvantages in the upcoming sections.
Per diem work offers unique advantages for both employees and employers, making it an increasingly popular employment model across industries.
Thus, it can be safely said that per diem work creates a win-win situation, delivering agility for employers and autonomy for workers in an ever-evolving job ecosystem.
While per diem work offers flexibility and higher pay potential, it also comes with trade-offs that both employees and employers should consider.
Thus, we would not be in the wrong to say that while per diem work can be a strategic choice, understanding the risks is absolutely essential for making informed decisions that protect both employee welfare and employer accountability.
Understanding per diem vs part time work comparison is essential for professionals deciding which type of employment best fits their lifestyle, and for employers choosing the right staffing model. Having a thorough idea about full time equivalent concept also won’t hurt.
Now, let’s take a look at a side-by-side comparison:
| Parameters | Per Diem Work | Part Time Work |
| Schedule & Stability | Highly flexible; shifts are offered as needed with no guaranteed hours or routine. | Typically has a set schedule with regular, recurring hours each week. |
| Pay | Often higher pay per hour or per day due to lack of benefits and short notice. | Generally lower hourly rate compared to per diem, but more consistent income. |
| Benefits | Usually does not include health insurance, retirement plans, or paid leave. | May include limited benefits depending on employer and hours worked. |
| Commitment | Minimal commitment; workers can accept or decline per diem work schedule at will. | Requires a formal commitment to a schedule and may include contractual terms, |
Key Takeaways:
Choosing between per diem and part-time work comes down to your career goals, financial needs, and how much control you want over your schedule. Both models offer pros and cons, and the right choice depends on your individual situation.
A per diem job is a type of employment where workers are hired on an as-needed basis, often paid by the day or shift rather than a regular salary. These roles offer flexibility and are common in industries like healthcare, education, construction, and hospitality.
Unlike part-time or full-time jobs, per diem work from home jobs do not guarantee consistent hours or benefits, making them ideal for someone exploring freelancing opportunities or for that matter, anyone seeking a flexible schedule or supplemental income.
Employers use per diem workers to fill short-term staffing gaps, manage seasonal demand, or cover absences, allowing both parties to benefit from a more adaptable working arrangement.
Now, that you have a clear idea of what does per diem mean for jobs, let’s take a look at the common industries offering per diem work in the next section.
Per diem work is becoming increasingly popular across a range of industries that require flexibility, rapid staffing solutions, and access to specialized talent. Here are some of the most common sectors where per diem jobs are widely available:
The healthcare industry is the largest provider of per diem opportunities. In 2023, the U.S. per diem nurse staffing market generated approximately $4.36 billion in revenue and is projected to reach $6.36 billion by 2030, growing at a CAGR of 5.5% .
Hospitals (holding a 68.3% market share), clinics, and nursing homes frequently hire per diem nurses, medical assistants, respiratory therapists, and other professionals to fill last-minute staffing gaps or cover peak demand. This model helps facilities maintain high standards of patient care while managing labor costs.
Per diem work near me is also common in the education sector, particularly for substitute teachers, aides, and administrative staff. Educational institutions, particularly K – 12 schools rely on per diem professionals to maintain classroom continuity when full-time educators are absent. It’s a great option for retired teachers or those pursuing flexible teaching careers.
Hotels, event venues, and catering companies often hire per diem workers to meet fluctuating guest volumes or seasonal spikes. Against this backdrop, we would like to point out that government-related travel alone supports nearly 300,000 hospitality jobs and contributes $33.5 billion in travel spending annually.
Roles can include servers, bartenders, housekeeping staff, and event coordinators. It allows businesses to scale operations without long-term commitments.
Construction projects often require skilled labor on a temporary or project-by-project basis. Electricians, carpenters, plumbers, and safety officers may be brought on per diem for specific phases of a build. This allows for agility and access to experience tradespeople without permanent hires.
Tech and consulting firms sometimes use per diem models for short-term contracts or client-based work. IT specialists, project managers, and business consultants are brought in for specific deliverables. Such an approach offers flexibility for both the worker and the company.
Now, that you know what does per diem mean in a job as well as the common industries offering per diem work, let’s explore the top per diem job in 2025 in the next section.
Per diem jobs continue to gain momentum in 2025 as more professionals seek flexible, short-term work that offers control over their schedules. Here’s a breakdown of some of the top per diem work type across key industries:
The healthcare sector continues to see a surge in per diem roles due to staffing shortages and increased demand. According to Grand View Research, the U.S. per diem nurse staffing market will reach $13.07 billion by 2030. This bears a clear testament to the fact that per diem work from home nursing jobs are booming at a never-seen-before scale. Key roles include:
Educational institutions rely on per diem staff to maintain continuity in instruction. The U.S. Bureau of Labor Statistics notes a steady demand for substitute teachers and tutors.
Beyond healthcare and education, several industries offer per diem work opportunities:
These per diem work opportunities offer both flexibility and competitive pay — ideal for professionals looking to stay in control of their schedules in 2025.
Finding per diem work requires a mix of proactive searching and smart use of available resources. Whether you are a nurse, teacher, consultant, or gig worker, here are effective strategies to uncover per diem job opportunities.
Per diem pay varies based on location, time of year, and job role. For 2025, the General Services Administration (GSA) sets the standard per diem rates for the continental U.S. (CONUS) at $178 per day ($110 for lodging and $68 for meals) and incidental expenses (M&IE) per day. However, rates can be higher in designated non-standard areas (NSAs) due to increased living costs.
This method simplifies accounting but requires adherence to IRS guidelines to ensure compliance.
Understanding these rates along with the intricacies of payroll schedule helps both employers and employees manage travel expenses effectively and remain compliant with federal guidelines.
Yes, per diem payments can be taxable, depending on how they’re issued and used. If an employer provides a per diem allowance that doesn’t exceed the IRS-approved rates and the employee submits an expense report, it’s non-taxable.
However, if the allowance exceeds federal rates or lacks proper documentation, the excess is considered taxable income. According to the IRS, per diem rates vary by location but typically include lodging, meals, and incidental expenses. Always consult a tax advisor or IRS guidelines to ensure compliance and proper reporting of per diem income on your tax return. Mention not, understanding the difference between gross and net pay is critical in this regard.
Download Free Per Diem Expense Report Template
A per diem allowance is a daily payment provided by employers to cover expenses incurred by employees while traveling for work. Instead of reimbursing itemized receipts, companies offer a fixed daily rate that simplifies travel reimbursements and ensures consistency.
Per diem allowances typically encompass:
These rates vary on the basis of location and are set annually by the General Services Administration (GSA) for domestic travel within the continental U.S. (CONUS). As aforementioned, for fiscal year 2025, the standard travel per diem rate is $178, comprising $110 for lodging and $68 for meals and incidentals.
Employers assign a daily per diem rate based on the destination and duration of travel. Employees receive either an advance payment or a reimbursement after submitting travel documentation. If they spend less than the allowance, they may keep the difference. However, most employers require a record of travel dates and purpose to validate the claim.
If the per diem allowance is within IRS-approved limits and the employee submits appropriate documentation, it is non-taxable. However, any amount paid above the federal per diem rate, or without proper substantiation, is considered taxable income.
Some companies prefer a receipt-based reimbursement model, where employees receive reimbursement for actual expenses. Others may use corporate credit cards or stipend systems based on job grade or project type.
Understanding how per diem allowances work helps both employees and employers manage travel expenses efficiently while staying compliant with tax regulations.
Thriving as a per diem worker takes more than just accepting flexible gigs — it requires professionalism, communication, and strategic planning. Let’s take a look at some expert tips to help you stand out and build a rewarding per diem career.
When working per diem, keeping accurate track of your hours is crucial for proper payment, tax filing, and personal budgeting. Clockdiary is the best free time tracking app, with in-built timesheet calculator, available for per diem workers who need a simple reliable way to manage their time across multiple assignments. Here’s how Clockdiary proves to be useful:
Thus, we can safely say that Clockdiary’s powerful features cater to the dynamic needs of per diem workers and their employers, making it a valuable tool for efficient time management and day-to-day productivity tracking. Get in touch with us to make this supremely engineered app an integral part of your daily life and see the difference for yourself.
Frequently Asked Questions About Per Diem Work:
A per diem work schedule means that an employee workWhat is A Per Diem Job at A Hospital?
s on an as-needed basis, without a fixed number of hours or guaranteed shifts. Scheduling is typically flexible and depends on the employer’s immediate staffing needs and the employee’s availability.
A per diem job at a hospital involves healthcare professionals, such as nurses, technicians, or support staff, working on an as-needed basis without a guaranteed schedule. These roles offer flexible shifts to fill staffing gaps, cover high patient volumes, or provide backup during employee absences.
A per diem employee can work as many or as few hours as the employer requires. But there’s no guaranteed minimum or maximum — scheduling is typically based on immediate staffing needs. While some may work full shifts regularly, others might only be called in occasionally, depending on demand and availability.
Per diem work operates by paying employees a daily rate for the days they work, rather than offering a fixed salary or hourly wage. This setup provides flexibility for both workers and employers, allowing staffing adjustments based on immediate needs.
For employees, per diem work means they are hired on an as-needed basis and paid a daily rate for each day they work, without a guaranteed schedule. It offers flexibility, higher pay potential, and varied work environments, but often comes without traditional benefits like health insurance or paid time off.
For truck drivers, per diem pay provides a daily allowance to cover meals and incidental expenses while they are away from home on long-haul trips. This system helps drivers reduce their taxable income, as the per diem portion is often considered non-taxable if it meets IRS guidelines.
Per diem payments are typically required when an employee travels for work and incurs lodging, meals, or incidental expenses, following the employer’s travel policy or a contractual agreement. Employers generally provide the per diem either in advance of travel or as a reimbursement after the trip, depending on company guidelines and IRS rules.
