Ismaila Njie, the finance manager of the Gambia Football Federation (GFF), has highlighted the crucial role of per diem payments in managing business-related travel expenses within the organisation.

According to Njie, per diem payments are rooted in institutional policy and are designed to offer a fixed daily allowance to employees for covering expenses such as travel, meals, lodging, and other incidentals while on official duty. “It simplify expense management and potentially reducing paperwork for both employer and employee” he explained.

Per diem payments, he noted, not only simplify operations but also bring significant cost-control benefits. “Per diem rates can help employers control costs by setting a clear limit on what an entity is willing to cover,” Njie said. He referenced GFF’s two-pronged policy approach, which includes full board provisions and enhanced per diem based on the support provided to officials.

Njie also touched on the potential tax benefits, explaining that per diem can often be tax-deductible for employers and may not be classified as taxable income for employees if aligned with international reporting standards. “Per diem payments can be tax-deductible for employers and may not be considered taxable income for employees, depending on the circumstances and compliance with International Reporting Standard guidelines,” he added.

Importantly, he emphasized the positive impact on employee satisfaction, pointing out that per diem allows staff to focus on their duties without the stress of out-of-pocket expenses. “Employees appreciate per diem because it allows them to travel for business without spending out of their pockets and protect from conflict of interest in representation,” Njie stated.

Njie concluded by acknowledging the challenges posed by exchange rate inflation, especially when payments are made in the local currency (GMD). “Unfortunately the amount in GMD (local currency) relatively has a disadvantage in terms exchange rate inflation” he noted.

By Ebrima KB Sonko