FEOR-based wage caps are among the most important elements of grant budget planning. In many funding schemes, personnel costs are eligible only up to a specific amount, and this amount often has to be determined on the basis of gross average wage data linked to the FEOR code.
In practice, this means that it is not enough to state how much you would like to budget for a project team member’s salary; you must also be able to substantiate that the remuneration for the given position complies with the limits set out in the funding call or the related notice.
What is FEOR and why is it important?
FEOR, i.e. the Unified Classification System of Occupations (= Foglalkozások Egységes Osztályozási Rendszere), is a system used to classify job roles. It is important in grant applications because, when personnel costs are reviewed, the decisive factor is often not the employer’s internal job title, but which FEOR-code occupation the given task corresponds to.
This is especially relevant when the funding body links wage eligibility to the FEOR-based gross average wage. In such cases, for the expert, coordinator, developer, finance officer or administrative employee working on the project, the most appropriate FEOR classification must be identified, and the planned wage must be compared to that classification.
What does the FEOR-based wage cap mean?
The wage cap generally means that the wage to be claimed for the given position may not exceed a specified reference value, or may deviate from it only with appropriate justification. The reference is typically the officially published gross average wage data by FEOR category.
In grant practice, this may appear in several ways:
- as an upper limit for the full monthly gross wage,
- as the basis for calculating an hourly or daily rate,
- as a pro rata value in the case of part-time or project-proportionate employment.
The exact rule always depends on the specific call and the related guidelines, so the FEOR data alone is not enough: it must always be interpreted together with the grant documentation.
How should it be applied in practice?
To apply the FEOR-based wage cap correctly, it is advisable to use a simple, traceable logic.
1. Identify the task to be performed in the project
First, the actual task, not the person, must be determined. A different FEOR code may apply to project management, financial, technical, IT or administrative tasks.
2. Assign the most appropriate FEOR code
The internal job title can often be misleading. Titles such as “professional implementer”, “project assistant” or “coordinator” are not FEOR categories in themselves. The actual classification must be selected based on the content of the task.
3. Check the relevant official wage data
The next step is to find the appropriate published gross average wage by FEOR category. This should be used as the basis for planning if the call refers to it.
4. Review what the call allows
Not all grant schemes treat wage caps in the same way. In some cases, the FEOR average is the maximum eligible amount; in others, a certain percentage deviation, a specific justification or supporting evidence based on the organisation’s internal wage policy may also be accepted.
5. Apply pro rata calculation if the work is not full-time
If the employee does not work full time on the project, or only part of their working time can be charged to the project, the eligible wage must also be determined in proportion to working time and project allocation.
What should you pay attention to when documenting?
Alongside good planning, appropriate documentation is also key. It is worth preparing in advance:
- a brief description of the job role or project task,
- the justification for the selected FEOR code,
- the source of the wage data referred to,
- the calculation method,
- the logic of the pro rata allocation if the employment is not full-time.
This helps not only at submission stage, but also later during audits.
Managing FEOR-based wage caps is not a mere administrative detail, but one of the critical points in a grant budget. The correct FEOR classification, the selection of appropriate wage data, the pro rata calculation and the precise interpretation of the rules together ensure that personnel costs are genuinely eligible.
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