How do I calculate the hourly rate for salaries? 

First, it’s up to you (the beneficiary) to work out the hourly rate with the tables in the cost catalogue. Here’s how you do it: take the employee's full-time salary (also called FTE salary) from their payslip for the first full calendar month they work on the project.

Make sure you only include the basic gross salary. If there’s a fixed allowance (like a position allowance) and it’s confirmed in official documents (such as a contract or salary scale), that’s always part of the pay.

However, don’t include any extras, like bonuses, overtime, or payments that are taxed differently than regular salary - these are not eligible. Only the salary parts taxed as a normal salary can be used.

Once you’ve calculated the hourly rate - with the help of the cost catalogue - declare it and multiply it by the hours worked on the project when you make your report. Don’t forget to include the payslip you used for this calculation with your very first report! We’ll double-check the details you provide and get back to you if needed (i.e., more information is needed or we think you made a mistake in the calculation). 

The hourly rate, once determined, applies for the entire period of the project.

How many hours of staff costs can I claim per year? 

If an employee works full-time, you can claim up to 1,720 hours per calendar year for that person. If someone works part-time or is only involved in the project for part of the year, the maximum number of hours is lower. For example, with a 50% contract, you can claim up to 860 hours per year (50% of 1,720). If someone only works from September to December, you can claim up to 4/12 of their annual maximum. Both rules apply together when someone works part-time and is only involved in the project for a few months.

This maximum number of hours applies to each individual, not to each project. If someone works on several EU-funded projects, you must add all the hours together. The total must not exceed the annual maximum per person.

It is possible to claim more hours in busy months and fewer hours in quieter months. This is permitted as long as you do not claim more than the maximum annual quota of hours.

Please note: If an employee changes their working hours during the year, you must inform their project manager at Interreg Maas-Rhein. This is important as it will affect the annual maximum number of hours.

If a project ends up claiming too many hours, the excess hours are deducted from the programme. This can also happen after the programme has already approved the hours, or even paid them out.

Which payslip should I use to calculate the hourly rate if an employee joins the project mid-month?  

If someone starts working on your project partway through a month, don’t use that month’s payslip. Instead, wait until you have a payslip for the first full calendar month they actually work on the project. Use the gross salary from that complete month to set their hourly rate.

In summary:

1. Skip the payslip for the half month.

2. Use the payslip from the first full month they work on the project. 

This hourly rate, once determined, applies for the entire period the employee works on the project.

Can I include salary costs for people who do not work for any of the project partners in the project reports? 

The general rule at the programme level is that staff costs can only be claimed for persons directly employed by the project partner. An hourly rate is determined based on the pay slip, which serves as the basis for calculating the eligible costs under the project.

The only exception to this general rule is seconded staff. The salary costs for staff seconded by a third party to a beneficiary to carry out project activities are eligible in the same way as the salary costs of regular staff, provided that the project partner covers the salary costs itself on a non-profit basis.

This means that the salary cost of personnel seconded by a third party to a partner organisation to implement project activities is eligible, provided the partner pays the third party solely the actual salary costs incurred, without any profit margin. The project partner must therefore restrict any compensation to the real costs borne by the original employer. 

The secondment must therefore be substantiated by:

1. A secondment contract
   • including the name of the seconded individual;
   • clearly outlining the tasks assigned to the employee (including start and end dates), and these tasks must reasonably cover the activities of the Interreg project;
   • and the financial compensation by the project partner to the legal employer (amount per 
     hour).
2. The pay slip issued by the third party

The hourly rate calculation method outlined in the cost catalogue must be applied when determining the cost claimed for seconded staff. This implies that the hourly rate is derived from the pay slip issued by the original employer of the seconded individual. In each reporting period, the project partner must report:

1. corresponding timesheets
2. invoices paid to the legal employer.

The secondment must be genuine and comply with all relevant legal requirements. Any cost claimed for a person who is not directly employed and not seconded under a valid legal arrangement must be reported under external expertise and services. 

In Summary: 

The salary cost of staff seconded by a third party to a partner organisation to carry out project activities is eligible and should be calculated using the same method as that applied to regular staff, provided the partner can demonstrate the secondment is made on a non-profit basis. Project partners can by no means use secondment to circumvent public procurement provisions. 

Can I include VAT (value-added tax) on external costs for project expenses?

VAT on external costs can be included in project costs if one of the following applies:

1. The total project cost (including VAT) is less than €5 million.
2. The total project cost (including VAT) is €5 million or more, and the VAT cannot be recovered under national laws.

However, if you are a partner involved under a GBER scheme (General Block Exemption Regulation) and you are entitled to get VAT back from your national government or other sources, you cannot claim this VAT as a project expense. In other words, if your organisation can get the VAT back via taxes, you are not allowed to include it as a project cost, even if the total project costs are less than €5 million.

Can I charge VAT on intra-community supplies? 

In the case of intra-community supplies, VAT is not charged but is subject to the reverse charge mechanism. That means that the responsibility for declaring and paying VAT shifts to the purchaser. The supplier must indicate the application of the reverse charge on the invoice.

Reverse-charged VAT is eligible under the same conditions as regular VAT.

Nevertheless, since reverse-charged VAT is not paid alongside the invoice, its eligibility must be substantiated with the following supporting documents:

1. A reference to the cost line of the related invoice
2. A copy of the VAT declaration
3. A copy of the bank statement showing payment or refund of the VAT declared
4. Accounting records demonstrating that the reverse-charged VAT is recorded for the relevant invoices and included in the VAT declaration. 

 

What does UBO mean?

UBO stands for “Ultimate Beneficial Owner.” This is basically the person (or people) who actually owns or controls your organisation or company.

Where do I need to report the UBO? 

After your project has been approved and has been contracted, a special section will open in JEMS. If you are a project partner, you need to fill in your UBO details there. You’ll get a reminder on this during your JEMS training, and you can always check the JEMS manual for more help.

Some organisations don’t really have a “UBO” - for example, most public governmental bodies. If your organisation has no UBO under your country’s or region’s rules, you can leave this part empty in JEMS. But be aware: sometimes public bodies still need to list their directors or main representatives as UBOs, depending on EU or national rules for things like anti-money laundering.

If your organisation does have a UBO - because your national, regional, or EU law says so - you have to list them in JEMS before any contract can be signed.

UBO reporting is also required for public procurement contracts if the contract’s value is above the EU limit. This only applies if the supplier really has a UBO!

It is up to you (the project partner or supplier) to check if your organisation has a UBO under the law. This is based on Article 3(6) of Directive (EU) 2015/849 and any national or regional rules that go with it.

If you’re not sure, it’s always a good idea to ask your legal team or check your country’s guidance!

How can I acknowledge EU support on social media? 

You can display the EU support prominently in the description of the social media account of your organisation and/ or the project. Information mentioned in Article 50(1)(a) of the CPR can be provided in the bio/profile description to be always visible. Posts used to give regular updates on the activities and results could also feature personal stories of real end users of the project.

How long does a billboard or plaque stay in place? 

Permanent billboards or plaques should be placed on the operation site as soon as it starts, as stated in Article 50(1)(c) and (d) of the CPR.

Plaques and billboards shall stay in place permanently. A common problem is meeting the obligation to provide permanent information materials under rigorous historical reconstruction rules.

What is Interreg?

Interreg is a dynamic European Union funding programme strategically crafted to nurture collaboration and development among diverse regions within Europe. Tailored to the specific needs of each European border region, Interreg is more than just a funding initiative – it's a catalyst for positive change.

At its core, Interreg aims to diminish economic and social disparities among EU regions, fostering territorial cohesion while championing balanced and sustainable development.

Join us in in this journey towards a united and thriving Europe, where collaboration knows no borders, and development knows no bounds.

What kind of Interreg programmes are there? 

1. Cross-Border Cooperation

Interreg Cross-Border Cooperation, often referred to as Interreg A, supports collaboration in regions located on both sides of an EU border. There are 60 cross-border Interreg programs, one of which is the Interreg Meuse-Rhine (NL-BE-DE) programme.

1. Transnational Cooperation

Interreg Transnational Cooperation, known as Interreg B, involves regions from multiple EU countries coming together to form larger areas.

1. Outermost Regions

Cooperation programmes for outermost regions, part of Strand D, enables effective and seamless cooperation between Europe and its neighbouring countries and territories in these regions.

In the 2021 to 2027 programming period, Interreg has refined its strategic vision to address crucial challenges, including climate change, digital transformation, and social inclusion. With a resolute commitment to these pressing issues, the European Union has allocated a substantial budget of approximately EUR 10 billion to bolster Interreg initiatives. This financial support will contribute to advancing the European Union's cohesion policy priorities, fostering a united and resilient Europe.

What are the additional obligations for projects of strategic importance? 

In such a project, you should organise at least one event or activity where EU-support is featured prominently. If only one such event or activity is organised, ideally, it should be the inauguration of the project.

You should invite the Managing Authority and the Commission in due time, for example at least three months ahead, to give them the possibility to attend the event. The event or activity should be accessible to the media, and possible end users should be invited to take a first look at the new achievements.

Furthermore, such activities could include an open day during the implementation of the project. More details are in the handbook for projects of strategic importance.