PAKT – a new bonus linked with Horizon Europe participation

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At the end of September this year, The Ministry of Science and Higher Education has published on its websites the very first drafts of the so-called PAKT project, i.e. „Premia dla AKTywnych”(en. Bonus for active participants). Objective of the proposed model is to create an effective – as well as simple and transparent – bonus system recognizing the best scientists. This shall be achieved by adjusting the remuneration regulations implemented in research units. In the context of the Horizon Europe, the PAKT is to encourage national units and scientists to increase their activity in the upcoming framework program.

Poland’s participation in the EU framework program for research and innovation

The ongoing Horizon 2020 research and innovation framework program will soon be replaced with Horizon Europe, with a proposed budget of around EUR 85 billion (current figure), which aims to further strengthen research and innovation in Europe. The national goal at the end of the implementation period of the Horizon Europe programme, is to increase the financial share of Polish entities to the level of at least 3% of the total budget of the program. This will allow for achieving a balance between the national contribution to the program budget and its use by Polish researchers and innovators.

Poland’s participation in the Horizon 2020 program is growing steadily, yet it is still too low in relation to country’s potential. As a matter of fact, Poland is the net payer, recovering only 1.21% of the Horizon 2020 budget allocated to EU countries, while our contribution to the programme is at the level of approx. 3%. An overview of the current participation of Polish entities in the H2020 can be found on a dedicated website of the Polish NCP.

In order to achieve the set goal, the Ministry has diagnosed a number of reasons for the low participation of Polish public entities in the framework program and recommended actions to be implemented before the launch of HE. One of these concerns the availability of competitive salaries in research projects.

Proposed changes to the system of remunerations in R&D projects

One of the main obstacles hindering increased participation of Polish scientists, was the lack of sufficiently high financial gratification for work performed under the framework programs. Note that in projects financed under H2020 there are two methods of settling remuneration:

  • reimbursement of costs incurred, based on the employment / appointment contract – settled at the base rate,
  • the so-called project-based remuneration, where remuneration differs depending on whether the employee works for the project or not – the base rate and additional remuneration are settled.

Due to the objective fact of lower level of remuneration of scientists working in Poland as compared to those in Western European countries, the first scenario does not contribute to increasing the competitiveness of wages in the R&D sector. On the other hand, the second model requires that scientific units adopt well-defined, transparent and stable rules for remuneration in projects, funded with both domestic and foreign programmes. The PAKT therefore, is a set of guidelines and references prepared at the level of the Ministry of Science and Higher Education, which is to facilitate the adoption of appropriate regulations at universities and research units.

According to the Ministry, the implementation of new regulations concerning project remuneration – in line with the provisions of the PACT system – will benefit not only individual scientists, but shall bring even greater profits to universities and research  institutes. The regulations proposed under the PAKT provide a legal framework for an agreement between a university or an institute and the most active and successful scientists, thus facilitating the ever more efficient implementation of projects, including those funded under Horizon Europe.

The solutions developed within the PAKT system will be used for designing of the NCBR and NCN regulations, The Ministry of Science and Higher Education is currently awaiting for the approval of the proposed provisions by the European Commission, which is believed to take place only after the formal adoption of the HE legislative package. We hope the latter one materializes before the end of the year.

Proposed regulation regarding additional project-based remuneration

The provisions proposed by the Ministry of Science and Higher Education constitute a regulation that meets the guidelines of the European Commission. It was developed as an exemplary regulation, while its modifications are allowed in accordance with the specificity and needs of a given unit. However, below are the basic principles that must be maintained:

  • the additional allowance may not be discretionary and its amount must be clearly defined in the regulations at a specific level (restrictions in the form of the salary range are not sufficient)
  • the regulations must apply to a group of projects financed both from domestic and foreign sources.

The proposed example – provided by the Ministry of Science and Higher Education – contains the basic regulations that should be utilized by institutions with appropriate implementing provisions enabling their deployment.

Bear in mind, that the text below is the English translation of the original proposal published by the Ministry only in the Polish language version. The following text cannot be regarded as legally binding, nor should it constitute the basis for activities aimed at preparing the stipulated regulations. PolSCA is not responsible for the use of the following material.

The proposed provision of the “Regulations” – project-based remuneration

  1. The employee will be paid additional remuneration for the time worked in projects financed from external sources (domestic and foreign), in the amount of X% of the basic salary (or in the amount specified in Annex x), according to the proportion of time worked in the project.
  2. An employee acting as a project manager will be paid, above the additional remuneration specified in point 1, the bonus remuneration in the amount specified in Annex x (or in the amount of Y% of the basic remuneration), according to the proportion of time worked in the project.
  3. An employee acting as a work package manager will be paid, above the additional remuneration specified in point 1, the bonus remuneration in the amount specified in Annex x (or in the amount of Z% of the basic remuneration), according to the proportion of time worked in the project.
  4. The basic remuneration includes the following components: the basic salary specified in the employment contract or the deed of appointment, the seniority allowance, the functional allowance and the allowance for work in harmful or strenuous conditions.
  5. The rules specified under sections 1-4 do not apply where the level of additional remuneration related to the implementation of the project is determined by the funding institution. In this case, the terms and conditions set by the funding institution apply.
  6. The basic remuneration and additional remuneration may not exceed the amount of XYZ (or, alternatively, may not exceed the amount resulting from the recommendation of the Minister responsible for science). In the event that the basic and additional remuneration, calculated according to the principles set out in sections 1-3 exceeded this amount, the employee is entitled to the XYZ amount (or, alternatively, the amount resulting from the recommendation of the Minister responsible for science).
  7. The regulations apply to all projects that were awarded to a given unit after January 1, 2021.

Explanation to the „Regulations”

Ad 1 – It is not specified whether the allowance is to be in the form of % of the basic remuneration or whether it should be expressed in a specific amount. It depends on the decision of a given institution, however the Ministry of Science and Higher Education recommends setting the % level. The amount of the allowance may depend on the position of the employee, role in the project, the size of the project or other objective criteria specified in the regulations, as decided by the institution. Each institution will define under its own remuneration regulations specific amounts of bonuses under section 1 within the percentage limit announced by the Ministry of Science and Higher Education.

Ad 2,3 – It is optional whether the entity decides to additionally reward persons performing specific roles in the project. The amount of such bonus remuneration can be selected in amount or percentage (Ministry of Science and Higher Education recommends setting the amount).

Ad 1,2,3 – If an institution uses more complex systems that differentiate the level of allowances according to more criteria, then these shall be specified in the annexes.

Ad 5 – It also includes a situation when the funding institution does not allow additional allowances to be paid to employees in connection with the implementation of the project. The funding institution may, in particular:

  • specify maximum X, Y, Z levels as amounts or percentages. The amount levels may refer to both the monthly remuneration (100% of working time) and the actual remuneration (proportional to the % of the time involved in the project);
  • specify that the granted funds can be paid to cover full employment cost or the project bonus only;
  • define its own remuneration rules. Pursuant to this point, specific types of projects are excluded, e.g. MSCA fellowships under HE, which apply lump sums specified by the European Commission as well as projects financed by Polish Financing Agencies, in which the level of additional remuneration is specified.

Ad 6 – Additionally, in order to prevent situations where the remuneration paid in accordance with the applicable regulations exceeds the market values, the Ministry of Science and Higher Education shall set the value of the maximum monthly remuneration that may be used in projects.

NOTE: The current proposal of the Ministry of Science and Higher Education says that the XYZ amount should be the equivalent of approx. 7000 Euro

Ad 7 – It is important to determine in the content of the regulations to which projects its provisions apply. The entity has to decide whether rules will be applied to ongoing projects or only to newly acquired projects.

Additional remarks

  1. The following steps are necessary for the system to be deployable:
    • The Ministry of Science and Higher Education – in consultation with the Financing Agencies – defines and announces the limit within which institutions may apply the percentage increase in remuneration (point 1 of the proposed regulations) and the value of the maximum monthly remuneration (point 6 of the proposed regulations)
    • As a rule of thumb, Polish Financing Agencies do not define in their respective competition rules the amount of project remuneration, which shall be regulated pursuant to project remuneration regulations specified by institutions (except for specific programme calls, where the amount of remuneration/bonuses will be determined by funding institutions and will be excluded in accordance with point 5 of the institution’s regulations).
  2. The exclusions set out in clause 5 of the Regulations are objective and thus the European Commission should have no objections in this regards. Unfortunately, if exceptions are to be utilized too widely, this may lead to a situation that the said regulations will only apply to project allowance paid in projects funded under of the Horizon Europe only. This is in contradictory to the basic assumption that the project allowance should be paid both in European and national programs. . The EC has announced that it will audit not only the regulations, but also the practice, i.e. whether the provisions are also applied in national projects. From this follows the pursuit for Polish Funding Agencies to adjust their rules in such a way that the payment of the project allowance on the basis of the regulations of the institution is also possible in programs financed from national funds. If it is not possible to adjust the rules of all types of projects to the EC guidelines, then at least some of them shall be harmonized according to later guidelines.
  3. Each research unit participating in the Horizon Europe program should implement at least one project (the more the better) in which remuneration is paid based on the same rules as in the Horizon Europe program.

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Published: 2020-10-13, T. Poprawka

Translated: 2020-10-22, T. Poprawka

Visuals: @Freepik.com


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