Extra payments are eligible in Horizon Europe under certain circumstances. They have to be registered in the accounting of the beneficiary for the reporting period as a cost.
In the case of a payment that has an accrual period greater than a month (such as extra payments), it can be included in the reporting for the accrued amount, but the amount should have been paid. Only costs that are registered in the accounting can be included in the cost reporting of the beneficiary. If the beneficiary accounts for it monthly as they accrue, in that case they may be included for the calculation of the daily rate. In no case can costs that are not accounted for be included. They will be included in the following reporting period. In the case that the extra payments have accrued in a period greater than the one covered by the reporting period, they are eligible for their total amount in the period in which are accounted for.
Furthermore, the Annotated Model Grant Agreement provides the list of conditions for personnel costs to be eligible:
- fulfil the general conditions for costs to be eligible (i.e. incurred during the action duration, necessary, etc; see Article 6.1(a) and (b)) and
- be paid in accordance with national law, the collective labour agreement and the employment contract/equivalent appointing act.
Generally, you may include, for each person concerned, the following:
- fixed salary
- fixed complements, if they are unconditional entitlements for the person (e.g. family allowance and contributions to medical insurance schemes set out in national law, complementary pension plan contributions set out in the collective labour agreement)
- variable complements, e.g. bonuses, if:
- they are paid based on objective conditions set out, at least, in the internal rules of the beneficiary
- they are paid in a consistent manner, i.e. not just for actions supported by EU grants, and
- where applicable, subject to the specific eligibility conditions for supplementary payments (see specific cases below)
- social security contributions (mandatory employer and employee contributions)
- taxes linked to the remuneration (e.g. income tax withholding)
- other costs and payments linked to the remuneration if they are justified and registered as personnel costs in accordance with the beneficiary’s usual remuneration practices (e.g. benefits in kind like company car made available for the private use, lunch vouchers).
For more information about extra payments in Horizon Europe and more, check the FAQ section on the Funding & Tenders Portal.