Lump-sum compensation

Lump-sum compensation is a results-based cost option. This means that support is paid to the beneficiary if the results pre-defined in the support decision as a requirement for paying support have been verifiably achieved. The purpose of this option is to focus more on tangible results and the impact achieved in the project instead of a detailed cost examination. 

The beneficiary does not need to present receipts of costs arising from their lump-sum compensation project in conjunction with the support payment application, onsite verification or auditing. The applicant must present a detailed cost estimate of their lump-sum compensation project with justification in conjunction with the project application. The cost estimate can be prepared using the principles of simplified cost options, including the flat rate. 

Lump-sum compensation can be used in projects in which total project costs are no more than €200,000.

For lump-sum compensation under business development aid funded by the Centres for Economic Development, Transport and the Environment (ELY), i.e. the growth survey, total project total direct costs cannot be more than €60,000. This does not include indirect costs, which are employer’s social insurance contributions and holiday pay, as well as flat rate costs, which the EURA 2021 system automatically adds to the cost estimate based on direct costs. For lump-sum compensation under business development aid. The maximum aid amount cannot cover more than 60 % of the total development measure costs . 

The funding authority can set more detailed requirements for projects chosen to receive funding in the funding call and instructions. In other words, the funding call and instructions provide the beneficiary with information about whether the lump-sum compensation option is applicable to the project in question. If required, the funding authority will provide more information. 

The option can only be used in projects for which clear and verifiable results have been defined as grounds for the payment of support in the project application and support decision. The funding authority decides whether lump-sum compensation can be used in the project. 

The implementation of lump-sum compensation and the payment of support can be divided into parts if this is purposeful considering the project content, and a clear result has been defined as grounds for the payment of support for each part.