What is new in Horizon Europe? 8 prerequisites you must know – no. 7.

Sophie Glaser-Deruelle

Sophie Glaser-Deruelle

Senior Consultant

The Daily Rate Calculation Methodology in Horizon Europe.

Horizon Europe is a €100bn grant funding programme spanning 2021 to 2027 – our blog series provides you with 8 prerequisites you must understand to be successful.

In this, the 7th of our 8 blogs, we are focusing on project budget in Horizon Europe and specifically the Daily Rate Calculation Methodology. In short, Horizon Europe is switching from a Person Month Cost, used in Horizon2020 to a Daily Rate Cost.

Horizon Europe is a funding opportunity that every SME, Public Body, Research Institution and Citizen Group could benefit from. We at IFE understand that the new Horizon Europe funding programme can also be confusing – there are new requirements and areas of focus compared with Horizon 2020. Once you have read this short blog series you will understand what is new in Horizon Europe.

Main Points

There were some errors made in the financial claims under Horizon2020, in particular in claiming for personnel costs – in fact personnel costs caused the most problems in financial claims.

In Horizon Europe this process is going to be simplified to reduce the errors and make life easier (more predictable) for project managers responsible for project budgets.

Under Horizon Europe, personnel costs will be calculated using a Daily Rate based on the following definitions:

  • Daily Rate (€) = Annual Personnel Costs (€) for the Person / 215 (working days in a year)
  • Days Worked = A Monthly Declaration (no time sheet needed)

On the basis of these definitions then, the Personnel Cost (€) = Daily Rate (€) x Days Worked.

That is the simple bit! There are a few things that need unpacking from here. Firstly, it is acceptable to work on an 8 hour day, or applicants can calculate productive hours (see the annex of this presentation).

Secondly, the “Personnel Cost” includes the following items:

  1. The wage of the person paid by the employer
  2. Social Security Contributions paid by the employer
  3. Further Variable Salary Components (as stated in an employment contract or required by national regulations)
  4. Taxes paid by the employer

Conclusion

Using Daily Rates will simplify budgeting and reporting under Horizon Europe in comparison with Horizon2020 – this is good news for participants when building budgets and drawing down funding. Details of Personnel Costs and eligibility will be given in detail in the Corporate Model Grant Agreement (cMGA) and we would advise checking with this document and guidance for further clarifications.

Here are some useful links to more information about the topics in this blog:

  • The main Horizon Europe Page is here.
  • Find live calls for funding here.
  • A breakdown of funding by pillar in Horizon Europe is here.
  • Learn more about Impact Funding Europe here.

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Sophie Glaser-Deruelle

Senior Consultant

Sophie is a mission-driven, analytic, and reliable consultant. Her focus is on the development of projects, and writing public funding bids and grant proposals for R&D. She holds an MA in International Relations and European Studies and has a strong background in SME development and enabling SMEs and Start-ups to access markets and funding. Sophie has over 10 years of experience in EU funding and project implementation including international project development, tender and funding proposal writing, policy development, implementation, and project management. At IFE, Sophie is a Senior Consultant and Project Development expert. She aids companies in defining their R&D needs and aligning them to calls, this includes ideation and development of projects, consortium building and writing proposals for EU funding.

Olaf Gerd Gemein

Verocity

Olaf is an entrepreneur since more than 35 years.

Peter Schottes

Eisenschmidt Consulting

Peter holds a PhD in nature science (climate impact research), worked as a project manager for software development and as a freelance consultant. He is managing director and shareholder of Eisenschmidt Consulting Crew in Kiel, Germany. He is a specialist in transformation projects and works as a sparring partner for top executives. His focus in on strategy development, digital transformation and concept development. Peter is active as advisor for StartUps and Angel investor. At IFE he overlooks the entire process of community building, stakeholder management and is also responsible for the project kick-offs.

Alex Chalkley

Venturenomix

Alex has a BSc in Mathematics, Economics & Computing and has already built a market-leading R&D Funding Consultancy in the UK from 2009 to 2019. Alex has developed funding bids, mainly in the form of R&D Grant Applications, that have secured over €60m for clients operating at the forefront of technology innovation. Venturenomix, focuses on supporting Impact Ventures by offering specialist funding related consultancy services to ambitious people seeking funding for good projects. At IFE, Alex is Managing Director and responsible for all aspects of the business, in particular recruiting, mentoring and adding value to the EU Grant Writing Consultants working on multi-million Euro EU Grant Applications.

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