EU FP7 guidelines
The cost of personnel assigned to the project
- The personnel must be directly hired by the beneficiary in accordance with its national legislation.
- The personnel must work under the sole technical supervision and responsibility of the beneficiary.
- As there is no distinction between cost models, any beneficiary may include in its personnel costs “permanent employees”, who have permanent working contracts with the beneficiary or “temporary employees”, who have temporary working contracts with the beneficiary.
- Personnel costs should reflect the total remuneration: salaries plus social security charges (holiday pay, pension contribution, health insurance, etc.) and other statutory costs included in the remuneration.
- Personnel must be remunerated in accordance with the normal practices of the beneficiary.
- Only the costs of the actual hours worked by the persons directly carrying out work under the project may be charged. Working time is the total number of hours, excluding holidays, personal time, sick leave, or other allowances. Only the hours worked on the project can be charged. Working time to be charged must be recorded throughout the duration of the project by timesheets, adequately supported by evidence of their reality and reliability.
Please see page 43 and 44 of the linked PDF