Result
Preserved earnings
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Preserved earnings = average daily earnings × number of working days on the trip. During a business trip an employee keeps their average pay, not their actual pay for that period — the same logic and formula as vacation pay, just for a different occasion.
This amount is separate from per diem — the reimbursement of extra living and meal expenses on the trip: per diem covers day-to-day spending while traveling, while preserved earnings is what the employee would have earned working at their usual place.
To calculate per diem itself, use the separate calculator — it works on different logic: not average earnings, but a fixed (and often regulated by law or company policy) amount per day.