The H2020 Grant Agreement presents different models on calculation of personnel costs. The University of Oslo (UiO) will in the following clarify UiO’s guidelines on how to calculate and report personnel costs to the Commission on all UiO projects funded in Horizon 2020, with the exception of Marie Skłodowska-Curie Actions.
If you have previously failed to follow UiO's guidelines for calculating personnel costs as described below, it will be expected that a review and reconciliation of estimated personnel costs for the entire EU project life cycle will be made in the next reporting period.
Main Principles
- Personnel costs must be incurred in connection with the action as described in Annex 1 and necessary for its implementation
- All personnel costs reported in the Financial Statement must be based on the calculated hourly rate – including full-time employees who do not operate with timesheets
- The calculation of the hourly rate shall be based on the last closed financial year
At UiO, the hourly rate shall be calculated by dividing total annual personnel costs (salary including social costs) from the last closed financial year with the number of annual productive hours (1720 hours):
The hourly rate = Total annual personnel costs (salary incl. social costs) from the last closed financial year* / Number of annual productive hours (1720 hours)
*The basis for total personnel costs is Art 5000-5499 in the accounts of UiO
To find the reimbursable personnel costs, the calculated hourly rate must be multiplied by the number of hours recorded in approved timesheets.
Reimbursable personnel costs (to be reported in the Financial Statement) = Calculated hourly rate × working hours recorded in approved timesheets
For employees who spend all their working time at the EU-project and therefore do not record working hours (timesheets), 1720 annual productive hours (or pro rata) are used to calculate reimbursable personnel costs.
Preconditions
Working hours and time recording
- For Horizon 2020 the number of annual productive hours at UiO is 1720 hours per year
- In a situation with reduced position, annual productive hours will be adjusted pro-rata (Example: 50 % = 860 hours per year)
- The number of productive hours does not affect the actual working hours
- It is not possible to report more than 1720 hours worked per year (or pro- rata)
- It is not possible to report higher personnel costs than those that are accounted for, but the reimbursable costs may differ from costs recorded in the accounts
- All time spent working on the project must be documented with approved time sheets:
- Timesheets is the basis for calculation of personnel costs and must reflect the reality
- Timesheets should document actual time spent on the project
- It is not necessary to report working hours spent on other activities than the EU-project, but be aware of sick leave, holidays and vacation.
- Timesheets are entered, signed and approved on a monthly basis. To be approved, the timesheets must be signed by the employee and the project leader. Timesheets for the project leader must be signed by the Head of Department or equivalent
- Employees who spend all their working time on a Horizon 2020 project can sign a «Declaration on a person working exclusively on a H2020 action», and will not need to record their hours in timesheets
Last closed financial year
- The «last closed financial year» will in practice be the same as the last calendar year (January to December)
- The previous year's personnel costs for the employee shall be used as the basis for calculating hourly rates for the months of the reporting period that are not part of a closed financial year**
- The previous year's personnel costs are derived from the employment at UiO and apply irrespective of any changes in the position in the current year. For example, a Post Doc will still use last year's personnel cost for calculating hourly rate even if (s)he then was employed as a PhD-fellow at UiO
- Any difference between actual personnel expenses and reported personnel costs as a consequence of using previous years’ personnel costs, can not be adjusted in the next reporting period
- If the employee has not been employed in the last closed financial year, the personnel costs for the current year are used to calculate the hourly rate
**It is the Reporting period that decides, not EU’s reporting deadline.
UiO’s templates for timesheets for Horizon 2020 projects, the «Declaration on a person working exclusively on a H2020 action» and a spreadsheet for calculating personnel costs in Horizon 2020 projects ("Lønnsavregning H2020") can be downloaded from UiO’s webpages on external funding.
NB! Projects funded by the EUs 7th Framework Programme (FP7) follow different guidelines. The H2020 guidelines must NOT be used for calculation of personnel costs for FP7 projects.
For further information on UiO’s guidelines on reporting personnel costs to EU, please refer to UiO’s general webpages on HORIZON 2020: EU research funding, including the specific section on Management and Reporting of Horizon 2020 Projects.
For questions concerning UiO’s guidelines on reporting personnel costs to EU, please contact UiO’s central EU-office at eu-office@admin.uio.no