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
- Employee costs (personnel with employment contract or equivalent appointing act).
- Seconded persons/staff (temporary transfer of employee to Beneficiary by a third party against payment).
- 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)
- 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.
· 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.
Reach Out to the EU Project Delivery Service Team