Personnel Costs Under Horizon Europe

Did you know that personnel costs are the highest cost category in most Horizon Europe project budgets? They can make up for more than 50-60% of the total project´s budget! Personnel costs are calculated on the daily rate, so the formula you need to know is:

Daily Rate x Day-equivalents worked in the project = Personnel costs

ELIGIBLE BUDGET CATEGORIES FOR PERSONNEL COSTS

1. Employee costs (personnel with employment contract or equivalent appointing act).
2. Seconded persons/staff (temporary transfer of employee to Beneficiary by a third party against payment).
3. Natural persons under direct contract (external consultants and other natural persons assigned to the project who work under conditions similar to those of an employee under direct contract)
4. SME owners and natural person beneficiaries (only under selected programmes). These are owners of beneficiaries that are small and medium-sized enterprises or natural person. Beneficiaries is not receiving a salary. Their personnel costs are calculated based on the “unit” (not actual costs), according to the monthly living allowance of: 5.080€/18 days = 282,22€ multiplied by the country-specific correction coefficient of the country where the beneficiary is established.

Other budget Categories for personnel Costs 

·       Volunteers' work (only under selected programmes): These are persons who freely work for Beneficiary, on a non-compulsory basis and without being paid.

·       Other personnel categories' costs (only under selected programmes): personnel costs based on time, personnel costs based on deliverables, customs/fiscals personnel costs.

Remember: 

·       To calculate the daily rate of actual personnel costs, consider the entire calendar year (Jan to Dec).

Daily rate = Actual salary covering the months worked within reporting period /215

·       The maximum number of working days per calendar year is 215 (equivalent to 1,720 hours).

·       You cannot declare estimated time for personnel costs. It must be based on actual time worked. All reported personnel costs must be supported by monthly timesheets or equivalent time records.

·       Parental leave is eligible. You need to deduct the applicable day-equivalents spent on parental leave from the maximum 215 declarable days.

·       Here's an example of a full-time employee taking 2 months leave from a 12-month reporting period: 215/12*2*1= 35.8 day-equivalents parental leave, which has to be deducted from the day equivalents worked in the project.