# Subsistence Expenses > Subsistence Expenses means costs for accommodation, meals, and non-alcoholic drinks during mandatory overnight business travel **Term:** Subsistence Expenses **Last updated:** 2026-07-29 ## Definition ## What Subsistence Expenses Means in a Contract Subsistence Expenses is a defined term used in employment contracts, consultancy agreements, and travel policies to describe the everyday living costs a person incurs while away from their usual place of work on business. These costs typically cover hotel or other accommodation, meals, and non-alcoholic drinks, and the term is almost always tied to mandatory overnight travel rather than ordinary commuting or local errands. The purpose of defining Subsistence Expenses in a contract is to draw a clear boundary between what the paying party will reimburse and what remains the traveler's own responsibility. Without a clear definition, disputes can arise over whether a lavish dinner, a minibar charge, or a taxi to a restaurant should be reimbursed. A well-drafted clause removes ambiguity by stating precisely which categories of spending qualify. In many organizations, this term appears alongside a broader