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Q: For ERC projects under FP7, is there a minimum time to be spent on the office premises by the staff recruited for the project so that staff costs are eligible?
A:

For FP7 projects, the time necessary to be spent in the office by the staff recruited for the project depends on the rules of the Host Institution and the applicable national legislation. However, according to Article II.15.1 of the General Conditions to the ERC Grant Agreements (Single and Multi-Beneficiary), only the costs of the actual hours worked by the persons directly carrying out work under the project can be charged.

Q: For ERC projects under FP7, can expenses linked to the recruitment of project staff (such as relocation expenses, advertising and travel costs to interviews) be considered as recruitment costs?
A:

In principle, it is expected from the host institutions to have the human resources necessary for the action at the start of the project.However, for ERC grants in FP7, recruitment costs may be eligible as direct costs.

To be eligible, expenses linked to the recruitment of project staff have to be in line with the general management practice and rules of the Host Institution/beneficiary and comply with the eligibility criteria of Article II.14 of the General Conditions to the ERC Grant Agreement (Single and Multi-Beneficiary), being directly traceable to the ERC project.

Q: Under FP7, can a retired researcher be paid out of an ERC grant? Which form can the payment take?
A:

In FP7, payments for retired researchers can be charged to the project if they are in line with applicable national law and practice, as well as with the specific rules applicable to and in the Host Institution.

Costs must also be compliant with the eligibility criteria of Article II.14 of the General Conditions to the ERC Grant Agreement (Single and Multi-Beneficiary).

The payments should be made via the Human Resources Payroll system.

Q: For ERC projects under FP7, how many hours make a person-month?
A:

For ERC projects under FP7, the number of hours that makes a person-month can vary between different Host Institutions.  Beneficiaries must calculate their specific productive hours according to the general practice in the Host Institution.

In case different categories of personnel have different working conditions, individual productive hours may be calculated. For the calculation method and examples, please refer to Part 2 B, section 1 on art.II.15 of ECGA, sub-section 1.(a), in the FP7 Guide to Financial Issues.The benchmark is 1680 hours based on 210 workable days and a 8 hour working day (Guide to financial issues Part 2B, section 1 on article II.15 of ECGA, sub-section 1.(a.2), in the FP7 Guide to Financial Issues).

Q: Under FP7, are tuition fees for PhD students working in an ERC project eligible costs?
A:

Academic fees may be due by post-graduate students back to their respective universities. In FP7, sometimes, in cases of work performed by the student for the university, the student may be exempt to pay (part of) the fee. This predetermined income for the university is eligible as personnel cost when there is a labour contract with the student in which the amount is indicated.

The other conditions of Article II.14.1 of the ECGA (Single and Multi-Beneficiary) have to be fulfilled as well.

See also in this regard Part 2B, section 1 on art II.15 ECGA, sub-section 1.(a.4), in the FP7 Guide to Financial Issues.

Q: Under FP7, which staff/personnel costs are eligible and therefore covered by the ERC Grant Agreement ? In addition, where should these costs be included?
A:

In FP7, the following costs related to the staff/personnel are covered by the ERC Grant Agreement:                                                                                                                                 - Salary of Principal Investigator:

According to Article II.15.1 of the General Conditions to the ERC Grant Agreement (Single and Multi-Beneficiary), the salary costs of the Principal Investigator can be covered by the ERC Grant Agreement. The amount charged can only represent the costs of the actual hours worked by the Principal Investigator on the ERC project (pro-rata to the Principal Investigator's involvement).

- Salary or costs of team members  These costs can  be covered, including for staff of HI   and  from third parties. At the time of the submission of the interim financial reports, costs should be declared for each staff member in the table "breakdown of direct costs" (Annex I to the Grant Agreement).

Any increase of salary (relating to indexations, years of service, steps in grades, increased responsibilities etc.) during the lifetime of a funded project.

However, the maximum contribution to the costs of the project is fixed in the Grant Agreement and cannot be increased (see Article II.18.4 of the General Conditions to the ERC Grant Agreement, Single and Multi- Beneficiary, and Part 1 on art. 5.1 of ECGA in the FP7 Guide to Financial Issues.

- Stipends/ Scholarships: Typically, a scholarship or stipend has the purpose that the awardee works on its own project. However if the person works on an ERC project, stipends or scholarships may be eligible pro rata provided that:• The stipend/scholarship is paid according to the general management and accounting practices of the Host Institution, which awards the stipend to the student.• The beneficiary has a written agreement with the stipend holder defining the work to be carried out on the ERC project and the amount of the stipend to be paid (letter of engagement, contract, or other official document).• The amount can be attributed directly to the project.• The conditions of the stipend/scholarship meet the general eligibility criteria of Article II.14 and Annex II General conditions to the ERC Grant Agreement (Single and Multi-Beneficiary).• The stipend/scholarship is not being reimbursed by another party.

- Bonus:Bonuses have to comply with all of the following criteria to be eligible:

  • be provided by internal regulations and/or practices of the organisation (calculation method, category of employees falling under this scheme, maximum amount, etc.);
  • apply to all projects (EU and non-EU projects, national and international) of the same kind; i.e. the bonus must be given to all international (EU and non EU) or to all national projects;
  • not result in a level of remuneration inconsistent with the current market conditions for a worker of the same category/grade/experience;
  • be recorded in the accounts as personnel costs and be subject to taxes and social security charges applicable to salaries or be specifically exempt from such taxes and/or charges;
  • and, finally, bonuses can only be paid as part of the employee's gross remuneration and only be reimbursed pro-rata according to the time spent on the project (e.g. If the researcher works only part of his/her working hours on the project, then only the part of the bonus related to the remuneration charged to the project will be eligible).

The criteria (qualitative or financial targets, research activities carried out, contractor's profitability, etc.) used to calculate the amount of the bonus can be accepted provided they are of general application within the beneficiary's organisation and are objective. 

Q: Under FP7, can projects that have more than one partner institution be funded by an ERC grant?
A:

Yes, in FP7, multi-beneficiary Grant Agreements are possible.

Q: For ERC projects under FP7, in case of a change of Host Institution, under which conditions does the Host institution have the right to terminate the Grant Agreement as well as the Supplementary Agreement?
A:

In FP7, if the Principal Investigator permanently moves to a third country which is not associated to FP7 and he/she is no longer in the position to continue leading an ERC funded research project, the Host Institution has the right to terminate the Supplementary Agreement with the  Principal Investigator.

The termination of the Supplementary Agreement compels the Host Institution to initiate the procedure of termination for the Grant Agreement.

The termination remains at the discretion of the ERCEA, following an evaluation of the situation on a case-by-case basis. Alternatives to the termination may be considered.

Q: Under FP7, on what grounds can ERCEA decide to terminate a Grant Agreement?
A:

In FP7, the cases where the ERCEA may terminate the Grant Agreement as per text law are outlined in Article II.35 (Single) and Article II.37 (Multi-Beneficiary) of the General Conditions to the ERC Grant Agreement.

Q: For ERC projects under FP7, what is the procedure if a Principal Investigator leaves (for whatever reason) the Host Institution?
A:

In FP7, if the Principal Investigator leaves the Host Institution, the participation of the Host Institution in the grant shall be terminated. Articles II.33 (Single) and II.35 (Multi-Beneficiary) of the General Conditions to the ERC Grant Agreement are applicable.The Host Institution is strongly advised to contact the ERCEA by sending a request to ERC-C2-AMENDMENTS@ec.europa.eu to receive a tailor made response and further guidance.