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Sometimes, project reporting is not as easy as it may seem, especially when reporting personnel costs.

Declaring SME owners’ work cost can be a bit tricky, we have prepared this post to clear some doubts.

There are two types of SME owners who work on a H2020 project:

  1. SME owners who receive a salary.
  2. SME owners without a salary (usually they invoice the company)

The first kind of SME owners can report their personnel costs in the same way as if they were employees working under a contract (salary slips, contract, timesheets…).

But, how can I report the work cost of SME Owners without salary?

In these cases, the Commision fixes an hourly rate to calculate the personnel costs of the SME owner. In this post, we are focusing on this kind of SME owners.

And how do I know which SME Owner rate applies to my project?

You can find it out by following three simple steps.

Steps to know the SME Owner rate that applies to your project


STEP 1.- Find the monthly living allowance that applies to your project.

The EC differentiates between those projects before Work Programme 2018-2020 and under said Work Programme.

  • For H2020 projects BEFORE Work Programme 2018-2020, monthly living allowance is set in 4,650€.
  • For H2020 projects under Work Programme 2018-2020, monthly living allowance is set in 4,880€.

You can check it on the EC’s “Additional Information on the Estimated Budget” (find it here).

STEP 2.- Apply the country-specific correction coefficient.

These coefficients can be found in the correspondent Work Programme, in Marie Skłodowska-Curie actions. You can check the 2018-2020 version here (see Table 2: Country correction coefficients (CCC) for ITN and IF living allowances)

For example: for Spanish SME Owners working in a WP 2018-2020 project, the country correction coefficient is 95.4%.


STEP 3 – Calculate your SME owner rate

How? Dividing the corrected monthly allowance by the monthly working hours which by default is set in 143.


An example

Let’s clarify all this with an easy example: “Spanish SME Owner working on a Work Programme 2018-2020’s project”.


  1. Step 1: monthly allowance. Since the project is under WP 2018-2020, the monthly allowance is of 4,880€.
  2. Step 2: country correction coefficient. We are in Spain, so the applicable coefficient is 95.4%. Then, calculate the corrected monthly allowance: 4,880*95.4% = 4,655.52€
  3. Step 3: SME owner rate. 4,655.52€/143 hours = 32.56€.

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