Understanding Horizon Europe Personnel Costs
Personnel costs represent the largest budget category in most Horizon Europe projects, often accounting for 60–80% of total project costs. Eligible cost is the product of two factors — a daily rate and the day-equivalents worked on the action — but how the daily rate is determined depends on the personnel category. For employees, natural persons on direct contracts, and seconded personnel (categories A.1 – A.3) the daily rate is the actual-cost rate calculated per reporting period; for SME owners, natural-person beneficiaries without salary and the optional HE personnel unit cost (A.4 and A.6) the daily rate is a prefixed unit cost adjusted by the country correction coefficient; volunteers (A.5) use a per-programme unit rate.
Under the current Horizon Europe Annotated Grant Agreement (v2.0, 01.04.2025), the actual-cost daily rate is calculated per reporting period: actual personnel costs during the reporting period ÷ maximum declarable day-equivalents in that reporting period, where the maximum declarable day-equivalents = (215 ÷ 12) × number of months in the reporting period (HE AGA, Article 1.4).
Key Changes in Horizon Europe
- Reporting-period-based daily rate replaces the H2020 fixed "annual cost ÷ 215" divisor (HE AGA, Article 6.2.A.1)
- Six personnel cost categories A.1 – A.6, with volunteers (A.5) now a distinct category available in selected programmes
- Project-based supplementary payments (A.1 Case 1B) capped against the national-reference daily rate using a Step 1 / Step 2 procedure
- Optional Horizon Europe personnel unit cost (A.6) for beneficiaries with approved unit costs, capped at 9618 × country coefficient ÷ 18
- Working-time factor applied throughout: the 215-day horizontal ceiling pro-rates to 215 × working time factor for part-time personnel
Personnel Cost Categories Explained
| Category | Description | Calculation Method |
|---|---|---|
| A.1 | Employees under employment contract | Actual-cost daily rate per reporting period (Case 1A) or project-based supplementary payments capped by the national reference (Case 1B) |
| A.2 | Natural persons under direct contract | Actual contract costs, daily rate calculated as for A.1 (rate must be comparable to employee rates) |
| A.3 | Seconded persons from third party | Actual secondment costs, daily rate calculated as for A.1 (rate must be comparable to employee rates) |
| A.4 | SME owners / natural persons without salary | Fixed daily unit rate × country coefficient (€282.22/day for calls opened before 30 July 2024; €485.86/day from that date onward) |
| A.5 | Volunteers (programme-specific) | Per-programme unit rate × day-equivalents worked. Available in ERDF-TA, LIFE, ERASMUS+, CREA, CERV, JUST, ESF/SOCPL, AMIF/ISF/BMVI, UCPM, RELEX |
| A.6 | Personnel unit cost beneficiaries (HE-only, approved) | Total staff costs (last closed FY) ÷ annual work-units ÷ 215, capped at 9618 × country coefficient ÷ 18 |
The Horizon Europe Daily-Rate Formula
Daily Rate = Actual Personnel Costs during the Reporting Period ÷ Maximum Declarable Day-Equivalents in the Reporting Period
where the maximum declarable day-equivalents in the reporting period (RP) is calculated as:
Max Day-Equivalents in RP = (215 ÷ 12) × Number of Months in the RP
The Role of the 215 Figure
215 is the per-calendar-year horizontal ceiling on day-equivalents that can be declared for one person across all EU grants (HE AGA, Article 1.1) — it is the upper limit, not a flat divisor. The figure derives broadly from 365 calendar days minus 104 weekend days and ~46 days for public holidays and annual leave. For a standard 12-month reporting period, the maximum declarable day-equivalents equals 215, so the daily rate simplifies to annual personnel costs ÷ 215. For reporting periods shorter or longer than 12 months, the divisor scales pro rata.
The actual time spent on parental leave by a person assigned to the action may be deducted from the maximum day-equivalents in the reporting period (HE AGA, Article 6). For part-time personnel, the 215 ceiling is pro-rated by the working time factor: max day-equivalents = (215 ÷ 12) × months × working time factor. The number of day-equivalents declared must be identifiable and verifiable per Article 20.
Project-Based Remuneration Requirements
For personnel receiving supplementary payments for project work (A.1 Case 1B), costs must meet four mandatory criteria:
- Actual costs paid: Must correspond to actual remuneration costs paid for time worked
- National reference cap: Cannot exceed remuneration for similar nationally-funded projects
- Objective criteria: Must be based on objective, documented criteria
- Consistent practice: Must reflect usual practice for national project payments
Pro Tip: Ensure you maintain detailed records of working time, employment contracts, and payment documentation. All day-equivalents must be identifiable and verifiable according to Article 20.
Horizon Europe Personnel Cost Eligibility Wizard
Calculate whether your personnel costs are eligible — fully aligned with the EU Annotated Grant Agreement (AGA) for Horizon Europe and adjacent EU programmes. Every formula references its AGA article.
Step 1 — Choose your EU programme
The eligible cost categories depend on the programme funding your action.
Step 2 — Choose the personnel cost category
How to Use the Calculator
The wizard guides you through four steps. Every input carries a tooltip with the exact AGA wording and article reference, so you can verify each figure against the source.
Step 1: Choose your EU programme
The eligible personnel cost categories depend on the programme funding your action. Horizon Europe is the default, but ERASMUS+, LIFE, CREA, CERV, JUST, ESF/SOCPL, AMIF/ISF/BMVI, UCPM, RELEX, DEP, EDF, CEF, HUMA, EUAF, SMP-ESS, ERDF-TA and several others are pre-configured. The programme selection determines which categories appear in Step 2. If your project is funded under Horizon Europe and your organisation has had its personnel unit cost approved (HE AGA, Article 6.2.A.6), tick the corresponding checkbox to unlock category A.6.
Step 2: Choose the personnel cost category
Pick the category that matches the person's relationship with your organisation. Only categories valid for the selected programme are shown:
- A.1 — Employee under employment contract: the default for permanent and fixed-term staff. Sub-options cover Case 1A (standard actual-cost daily rate) and Case 1B (project-based supplementary payments capped against the national-reference rate).
- A.2 — Natural person under direct contract: consultants or self-employed individuals contracted directly by the beneficiary on terms comparable to those of employees.
- A.3 — Personnel seconded from a third party: staff assigned to the beneficiary against payment by another organisation.
- A.4 — SME owner / natural person beneficiary without salary: a fixed daily unit rate adjusted by the country correction coefficient. The unit rate switches on 30 July 2024 — €282.22/day for calls opened before that date, €485.86/day from that date onward.
- A.5 — Volunteers (programme-specific): a unit rate applied to volunteer day-equivalents. Available only in a subset of programmes (ERDF-TA, LIFE, ERASMUS+, CREA, CERV, JUST, ESF/SOCPL, AMIF/ISF/BMVI, UCPM, RELEX).
- A.6 — Horizon Europe personnel unit cost: for HE beneficiaries that have had their unit cost approved. The daily rate is total staff costs of the last closed FY ÷ annual work-units (AWU) ÷ 215, capped at 9618 × country coefficient ÷ 18 — the calculator shows which bound applies.
Step 3: Fill in the reporting-period inputs
The form fields adapt to the category. For the A.1 – A.3 actual-cost route they include:
- Reporting period (months): the duration of the period for which you are declaring costs. The AGA treats one month as 30 days, so fractional months are supported.
- Working time factor: 100% for full-time, 75%, 50%, 25% or a custom percentage. If the factor changed mid-period, enable the multi-period toggle and enter each segment separately — the calculator sums max-DE and costs across the segments.
- Eligible personnel costs in the reporting period: the total actual costs for the person during the RP. The "What's included?" panel lists eligible and ineligible cost components verbatim from AGA Article 6.2.A.1.
- Day-equivalents worked on the action: half-day precision. The built-in hours-to-day-equivalent converter offers the three AGA options (8 hours flat; contractual hours adjusted by working time factor; or productive hours with the 90% safeguard).
- Parental leave (day-equivalents, optional): deducted from the maximum declarable day-equivalents in the RP.
Category A.4 adds a call-opening-date selector and a country dropdown with the MSCA correction coefficients. Category A.6 asks for total staff costs of the last closed financial year, the AWU (annual work-units) figure, and the country coefficient. Category A.5 only needs the days worked — the unit rate is fixed per programme.
Step 4: Review the result
The result panel renders the formula instantiated with your numbers, line by line, so you can audit the math rather than trust a single total. For an A.1 Case 1A worked example the panel shows:
- Max declarable day-equivalents in RP = (215 ÷ 12) × months × working-time factor − parental-leave DE
- Daily rate = personnel costs in RP ÷ max declarable DE
- Eligible cost = daily rate × day-equivalents worked on the action
The 215-day horizontal ceiling is automatically applied — if you enter day-equivalents already declared on other EU grants for the same person in the same calendar year, the panel warns when the combined total exceeds the per-year cap of 215 × working time factor (minus parental leave actually taken).
Common Calculation Scenarios
Example 1: Regular Employee, 12-Month Reporting Period
Scenario: Full-time employee with €50,000 in actual personnel costs over a 12-month reporting period, no parental leave, working 100 day-equivalents on the action.
Calculation:
- Max declarable day-equivalents in RP = (215 ÷ 12) × 12 = 215
- Daily rate = €50,000 ÷ 215 = €232.56
- Personnel cost = €232.56 × 100 = €23,256
Example 2: Employee with Parental Leave, 12-Month Reporting Period
Scenario: Employee with €45,000 in actual personnel costs over a 12-month reporting period, 30 days of parental leave taken during the period, working 80 day-equivalents on the action.
Calculation:
- Max declarable day-equivalents in RP = ((215 ÷ 12) × 12) − 30 = 185
- Daily rate = €45,000 ÷ 185 = €243.24
- Personnel cost = €243.24 × 80 = €19,459
Example 3: Part-Time Employee, Working-Time Factor Change Mid-Period
Scenario: Employee on an 18-month reporting period, working 50% for the first 6 months at a cost of €15,000, then full-time for the remaining 12 months at a cost of €60,000, with 200 day-equivalents worked on the action overall.
Calculation:
- Segment 1 max DE = (215 ÷ 12) × 6 × 0.5 = 53.75
- Segment 2 max DE = (215 ÷ 12) × 12 × 1.0 = 215
- Combined max DE = 53.75 + 215 = 268.75 → rounded to 269
- Daily rate = (€15,000 + €60,000) ÷ 269 = €278.81
- Personnel cost = €278.81 × 200 = €55,762
Compliance and Audit Requirements
To ensure your personnel costs pass EU audits:
- Time tracking: Maintain detailed, verifiable time records — day-equivalents declared must be identifiable per AGA Article 20.
- Employment documentation: Keep contracts, payslips, and employment records for every reporting period.
- Project assignment: Document formal assignment to the EU action.
- Cost justification: Ensure all costs are actual, necessary, and incurred during the reporting period.
- Cost-method consistency: Apply the same cost-determination method (actual cost or unit cost) consistently for the same personnel across reporting periods, in line with the approach declared at proposal stage.
Important: The total number of day-equivalents declared across all EU grants for one person in a calendar year cannot exceed 215 days — or the pro-rata equivalent (215 × working time factor) for part-time personnel — minus parental leave actually taken (HE AGA, Article 1.1). Our calculator includes validation to help you stay compliant.
Frequently Asked Questions
Can I include bonuses in personnel costs?
Mandatory bonus payments based on contracts, national legislation, and company agreements are eligible, including 13th and 14th salary payments — provided they are paid based on objective conditions set out at least in the beneficiary's internal rules, applied consistently (not only to EU-funded actions), and subject to any specific eligibility conditions for supplementary payments (HE AGA, Article 6). Discretionary bonuses require specific justification and compliance with project-based payment rules.
How do I handle part-time employees?
Set the working time factor on the form (e.g. 0.5 for half-time). The maximum declarable day-equivalents in the reporting period becomes (215 ÷ 12) × months × working time factor, and the 215-day horizontal ceiling is automatically pro-rated to 215 × working time factor for the same person across all EU grants in the calendar year.
What if the working time factor changed during the reporting period?
Enable the "multi-period" toggle on the A.1 form. Enter each segment (months, working time factor, costs, optional parental leave) separately and the calculator sums the max declarable day-equivalents and costs across segments before computing the daily rate.
What costs can be included in personnel costs?
Salaries, social-security contributions, taxes and other costs linked to remuneration are eligible if they arise from national law or the employment contract. The wizard's "What's included?" expandable panel reproduces the eligible and ineligible cost-component lists verbatim from AGA Article 6.2.A.1.
Do I need different rates for different projects?
It depends on the cost-determination method. Under the actual-cost method (the default route for A.1 – A.3 personnel), the daily rate is recalculated each reporting period from the actual personnel costs incurred in that period. Under the unit-cost method — used for SME owners and natural persons in A.4 and for the optional HE Personnel unit cost in A.6 — the daily rate is the prefixed amount set in the call's authorising decision, adjusted by the country coefficient where the beneficiary is established (HE AGA, Article 1.1). Apply the chosen method consistently for the same personnel across reporting periods.
How do I convert hours into day-equivalents?
Open the hours-to-day-equivalent helper inside the calculator. The AGA allows three options: divide by 8 hours; divide by the contractual hours per day adjusted by the working time factor; or divide annual productive hours (with the 90% safeguard against contractual workable hours) by 215.
Additional Resources
Disclaimer
Important Legal Notice: This calculator is provided for informational and educational purposes only. While we strive to ensure accuracy and compliance with current Horizon Europe regulations, this tool should not be considered as official legal or financial advice.
Key Points:
- Not Official EU Tool: This calculator is not affiliated with or endorsed by the European Commission or any EU institution
- Verification Required: All calculations should be verified with your organization's finance department and current EU guidelines
- No Liability: We assume no responsibility for decisions made based on calculator results
- Regulations Change: EU funding rules may be updated - always consult the latest official documentation
- Professional Advice: For complex scenarios or official submissions, consult qualified Horizon Europe specialists
Use this calculator at your own discretion and always validate results through official channels.
