diff --git a/hledger-lib/Hledger/Read/JournalReader.hs b/hledger-lib/Hledger/Read/JournalReader.hs
index 0b941e309..1b7f9dadc 100644
--- a/hledger-lib/Hledger/Read/JournalReader.hs
+++ b/hledger-lib/Hledger/Read/JournalReader.hs
@@ -226,6 +226,7 @@ directivep = (do
    ,applyaccountdirectivep
    ,commoditydirectivep
    ,endapplyaccountdirectivep
+   ,payeedirectivep
    ,tagdirectivep
    ,endtagdirectivep
    ,defaultyeardirectivep
@@ -519,6 +520,14 @@ endtagdirectivep = do
   lift restofline
   return ()
 
+payeedirectivep :: JournalParser m ()
+payeedirectivep = do
+  string "payee" <?> "payee directive"
+  lift skipNonNewlineSpaces1
+  _ <- lift $ some nonspace
+  lift restofline
+  return ()
+
 defaultyeardirectivep :: JournalParser m ()
 defaultyeardirectivep = do
   char 'Y' <?> "default year"
@@ -985,6 +994,11 @@ tests_JournalReader = tests "JournalReader" [
       pdamount    = usd 922.83
       }
 
+  ,tests "payeedirectivep" [
+       test "simple"             $ assertParse payeedirectivep "payee foo\n"
+       ,test "with-comment"       $ assertParse payeedirectivep "payee foo ; comment\n"
+       ]
+
   ,test "tagdirectivep" $ do
      assertParse tagdirectivep "tag foo \n"