Per diems are one of the first things a touring musician asks about and one of the easiest things for a tour manager to get wrong. Here is how they work and how to set a fair policy.
What Is a Per Diem?
A per diem (PD) is a daily cash allowance paid to band and crew on tour to cover meals and personal expenses. It is separate from wages or show fees.
How Much Are Per Diems?
There is no single standard rate. Per diems depend on the size of the tour, the budget, the cities you are in, and whether catering or meal buyouts are provided. Smaller tours pay less; larger productions pay more. What matters most is that the rate is agreed in writing before the tour and applied consistently.
Some tours use government travel rates as a reference point when setting per diems. In the US, the General Services Administration publishes daily meals and incidentals rates by city, and many countries publish similar tables. They can help you decide whether a city justifies a higher rate.
What Affects the Rate
- Catering. If the venue provides meals or buyouts, some tours reduce the per diem on show days.
- Location. Expensive cities and international legs often justify a higher rate.
- Day type. Some tours pay the same every day; others pay differently on show days, travel days, and days off.
- Contracts and unions. Union agreements or individual contracts may set minimums. Check them first.
Per Diem Policy Checklist
Write it down and share it before the tour:
- Daily rate, and whether it changes by day type or location
- Which days are paid (usually every day on the road, including travel days and days off)
- How it is paid (cash, payment app, or added to payroll) and how often
- What happens with meal buyouts and catering
- Who to ask if something is wrong
Tax Considerations
How per diems are treated for tax purposes depends on your country and how the tour is structured. Talk to the tour's business manager or accountant rather than guessing.
Budget It Properly
Per diems add up quickly: the daily rate times every person times every day on the road. Make it its own line in your tour budget so it never surprises management. For other terms like buyouts and settlement, see the tour management glossary.
