Skip to content
 

Payroll and indirect costs

A single individual may not exceed hours totalling one person-year overall for the same calendar year for involvement in Research Council-supported projects.

Universities and university colleges

The Ministry of Education and Research has stipulated that all institutions in the higher education sector are to implement the TDI model (common full costing methodology) for calculating payroll and indirect costs in their grant applications to the Research Council.

For the higher education sector, the Research Council may contribute the lump-sum rate for fellowship-holders to cover payroll costs for academic personnel. Any difference between the Research Council’s lump-sum rates and the institution’s budgeted payroll costs must be entered under own funding.

Payroll and indirect expenses for partners in the higher education sector in other countries may be calculated on the basis of the respective institutions’ own budgeting models, or using the employer’s salary costs (including social security costs), with an added overhead of 25 per cent to cover indirect costs.

Research institutes

Payroll and indirect costs are to be calculated together as hourly rates for the various groups of R&D personnel participating in the project. The institute is to report the specific rates each year to the Research Council using the designated form (Norwegian only) ZIP - 40 KB . The hourly rates are to be used in all grant applications directly from the individual research institute as well as all applications in which the institute is a partner in actual cooperation with the project owner. These rates must reflect the actual costs based on efficient operations.

Payroll and indirect expenses for research institutes in other countries that are partners in the project may be calculated on the basis of the respective institutions’ own budgeting models, or using the actual salary costs (including social security costs), with an added overhead of 25 per cent for indirect costs.

Companies

For internal R&D personnel participating in the project, payroll and indirect costs may be calculated together as hourly rates. The hourly rate for the individual participant is to be then calculated based on the agreed annual salary. The hourly rate is to cover payroll costs with additional overhead for social security costs related to salary paid and indirect costs that are of relevance to the R&D personnel’s activities in the project. The overhead for indirect costs must be substantiated by real costs entered into the accounts.

The following rules apply for calculation of hourly rates:

  • The hourly rate is calculated on the basis of the agreed annual salary, with a maximum rate of 1.2 ‰ of the annual salary.
  • The hourly rate may not exceed NOK 1 100/hour.
  • The number of Research Council-funded project hours per year for each individual may not exceed 1 850.

An average hourly rate may be used for budget calculations in the grant application. If funding is awarded, the project accounts must be based on the actual salary for each individual. The company may use a common hourly rate for groups of R&D personnel, but this rate must comply with the limitations mentioned above for each of the individuals involved. Separate guidelines have been drawn up for use in conjunction with project account reports. Those guidelines are based on the principle that all reported project costs must be actual costs.

These rules apply in all cases where payroll costs for companies in Norway comprise part of the basis for allocation of funding from the Research Council, i.e. regardless of whether the company involved is serving as the project owner or as a partner.

Public sector

For public entities/governmental institutions (See Definition Public body PDF - 62 KB ), payroll and indirect costs for internal R&D personnel participating in the project may be entered together as hourly rates. The hourly rate for the individual is then calculated on the basis of the agreed annual salary. The hourly rate is to cover payroll costs with additional overhead for social security costs related to salary paid and indirect costs that are of relevance to the R&D personnel’s activities in the project. The overhead for indirect costs must be substantiated by real costs entered into the accounts.

The following rules apply when using calculated hourly rates:

  • The hourly rates are calculated on the basis of the agreed annual salary, with a maximum rate of 1.2 ‰ of the annual salary.
  • The rate may not exceed NOK 1 100/hour.
  • The number of Research Council-funded project hours per year for each individual may not exceed 1,850.

An average hourly rate may be used for budget calculations in the grant application. If funding is awarded, the project accounts must be based on the actual salary for each individual. Entities in the public sector may use a common hourly rate for groups of R&D personnel, but this rate must comply with the limitations mentioned above for each of the individuals involved. Separate guidelines have been drawn up for use in conjunction with project account reports. Those guidelines are based on the principle that all reported project costs must be actual costs.

These rules apply in all cases where payroll costs for public entities comprise part of the basis for allocation of funding from the Research Council, i.e. regardless of whether or the entity involved is serving as the project owner or as a partner.

Published:
27.06.2007