The UK’s immigration health surcharge, commonly referred to as the NHS surcharge, has been confirmed by the European Commission as an eligible part of personnel costs on Horizon 2020-funded research and innovation projects.
Having sought clarification on the eligibility of the NHS surcharge, UKRO can now confirm that this can be considered an eligible personnel cost for Horizon 2020 projects which are funded on the basis of actual costs.
As indicated in the Horizon 2020 Model Grant Agreement (MGA), “personnel costs” cover salaries as well as other costs included in the remuneration, provided that they arise from national law or the employment contract. If the beneficiary organisation reimburses the employee, or pays the annual fee for the healthcare surcharge directly (if possible), it can include it in the personnel costs used
to calculate the hourly rate of that employee provided that:
- The payment of the fee is recorded in the accounts of the beneficiary, and considered under national law, as part of the remuneration of the employee;
- It is paid in accordance with the remuneration policy in place at the beneficiary organisation, and granted under objective conditions (e.g. if the beneficiary does not pay that fee to all employees who are subject to it, there must be an internal rule fixing the conditions upon which an employee is entitled to this payment);
- Like for all actual costs, the general eligibility conditions set out in Article 6.1(a) of the MGA must be fulfilled.