Sponsored Awards Vacation Time Policy

Harvard is implementing a new policy regarding treatment of staff vacation time, with specific implications for sponsored awards. This new policy applies only to exempt and non-exempt staff paid from object codes 6050 and 6070. Vacation time taken will no longer be charged as a direct expense to any sponsored award, but will instead be paid from a central Harvard vacation pool.

In addition, the regular salary budgeted on a grant will carry the regular fringe rate and a new vacation fringe rate. The new vacation fringe rates are 10.5% for exempt staff and 9.8% for non-exempt staff. When budgeting salaries for sponsored projects, the amount of salary requested should be reduced by the amount of vacation earned in proportion to the percentage of time budgeted. Please note that KSG policy is to reduce salary by the amount of vacation earned, as opposed to an estimate of what vacation time might actually be taken during the period of the grant. There will be further information distributed shortly regarding post-award implications.

The following is text that OSP has requested be included in all new sponsored proposal budget narratives, effective immediately:

"The staff salary expenses in this budget were calculated in accordance with the Harvard Treatment of Paid Absences portion of Section II of our rate agreement negotiated with the Department of Health and Human Services on April 13, 2007. Harvard will begin using a vacation accrual system beginning July 1, 2007. Paid absences for vacation will no longer be claimed as direct charges on awards and regular salary will carry a vacation fringe rate to accrue earned vacation. The amount of salary requested is reduced by the amount of vacation earned in proportion to the percentage of time budgeted."

Please click here for a sample budget, which includes a table that calculates the amount of salary earned based on FTE on the proposal.

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