If you’ve looked at traveling construction jobs, you’ve probably seen the term per diem included alongside the hourly pay rate. But what exactly does per diem in construction mean, and how does it affect your overall compensation when working away from home?
For electricians, plumbers, welders, pipefitters, carpenters, HVAC professionals, and other skilled trades workers, understanding per diem can make it easier to compare travel opportunities and determine whether a project makes sense for you.
What Is Per Diem in Construction?
Per diem in construction is an allowance that may be provided to workers who travel away from home for a job or project. The term “per diem” means “per day,” and the payment is generally intended to help cover expenses associated with working away from home.
Depending on the employer and assignment, those expenses may include:
- Lodging
- Meals
- Transportation
- Other travel-related expenses
Per diem is separate from your regular hourly wage. The amount offered, how it is paid, and eligibility requirements can vary considerably from one construction project to another.
How Does Construction Per Diem Work?
Construction companies frequently need skilled trades workers for projects outside their local workforce area. These assignments may last several weeks, several months, or longer.
To make traveling for a project more practical, an employer may offer a daily per diem allowance in addition to the worker’s regular pay.
For example, a job posting might list an hourly wage along with a specific daily per diem amount. Before accepting the position, workers should understand exactly how the employer structures the allowance.
Some projects provide per diem for every day of the week, while others may only provide it for days worked. There may also be attendance, residency, distance, or other requirements that must be met to qualify.
Is Per Diem Taxable?
Whether per diem is taxable depends on how the payment is structured and whether applicable IRS requirements are met.
The IRS establishes rules for accountable plans and travel expenses, and federal per diem rates vary by location. A payment simply being called “per diem” does not automatically make it tax-free.
Workers should review the specific terms of an assignment and consult a qualified tax professional when they have questions about how per diem may affect their individual taxes.
Why Do Construction Jobs Offer Per Diem?
Large construction projects often require skilled workers from outside the immediate area, particularly when projects need specialized experience or must quickly increase their workforce.
Per diem can help offset some of the additional costs workers encounter while temporarily living and working away from home.
Travel opportunities are common across many areas of the skilled trades, including:
- Electrical
- Plumbing
- HVAC and sheet metal
- Welding and pipefitting
- Carpentry
- Ironwork
- Industrial construction
- Data center construction
For skilled professionals who are comfortable traveling, these projects can provide access to opportunities outside their local market.
What Should You Ask Before Accepting a Per Diem Construction Job?
The hourly rate and per diem amount are important, but they shouldn’t be the only things you consider when comparing traveling construction jobs.
Before accepting an assignment, make sure you understand:
- The hourly pay rate
- The daily per diem amount
- Which days qualify for per diem
- Expected weekly hours and overtime
- Project location
- Estimated project duration
- Work schedule and shift
- Housing and transportation arrangements
- Required licenses or certifications
- Tools and PPE requirements
- Any attendance requirements tied to receiving per diem
Having these details upfront gives you a clearer picture of the entire opportunity.
Compare the Entire Compensation Package
A higher per diem amount doesn’t necessarily mean one construction job is better than another.
Consider the complete compensation package, including hourly pay, overtime opportunities, expected hours, project duration, benefits, and your anticipated travel and living expenses.
For example, lodging costs can vary significantly depending on the project location. A per diem amount that comfortably covers expenses in one city may not go as far in another.
Understanding the full picture can help you make a more informed decision before committing to a traveling construction project.
Finding Traveling Construction Jobs With People Source
People Source connects experienced skilled trades professionals with commercial and industrial construction opportunities, including traveling projects throughout the United States.
Our recruiting team works to provide candidates with clear information about each opportunity, including pay, schedules, project requirements, travel expectations, and available per diem when applicable.
If you’re an experienced skilled trades professional interested in traveling for your next project, explore current opportunities with People Source and find a position that matches your skills and experience.