Invest Northern Ireland
GEHR Guidance Notes
GEHR Guidance Notes
Version: V3
Issue Date: 01/06/16
Review Date: 31/12/16
EMPLOYER’S GROSS EQUIVALENT HOURLY RATE (GEHR)
Calculator Guidance Notes
INTRODUCTION
Labour costs for employees not working exclusively on projects are determined using the formula
below:
PROJECT LABOUR COST = PROJECT HOURLY RATE x ELIGIBLE PROJECT HOURS
The Project Hourly Rate used in the above calculation allows for:
 Employees Gross Pay
 Employers National Insurance Contribution
 Employer Pension costs (LED/R&D grants only)
 Paid Leave
This “grossed up” Project Hourly Rate is referred to as the “Gross Equivalent Hourly Rate” (GEHR)
Calculation of the GEHR requires the company to provide the following information for each
employee:
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National Insurance Category Letter
Hourly Rate or Basic Gross
Number of Pay Periods
Contracted Weekly Hours
Salary Sacrifice (required to correctly estimate the Employers NI)
Number of Paid Leave Days
Employer pension costs (LED/R&D only)
NOTES ON COMPLETION
The GEHR calculator provided produces a schedule of Project Hourly Rates for employees. This
calculator is to be used where the employees do not work exclusively on the Project.
Any changes to the GEHR list i.e. pay rises, staff changes etc. should be highlighted with each
claim.
Information
Required
Tax Year
Employee Number
Job Title (LED AND
R&D Only)
National Insurance
(NI) Category Letter
Hourly Rate or Basic
Gross
Description
This will automatically determine the employees’ tax free allowance and
National Insurance contribution. Selects the “Tax Year” according to the
start of the claim period to get the correct GEHR for the period.
Employee numbers rather than names. Where unique employee numbers
(e.g. from a payroll or HR system) are not available an employee number
should be allocated. These allocated numbers must be used consistently
across all claims for the Letter of Offer.
A separate template is available for reconciling employee numbers with
names
Employee job title as per contract or job description
The NI Category Letter (A, B, C, D, E, J, L, F G or S) is part of the payroll
information.
As per employee’s payslip.
No of Pay Periods
This should be the number of pay intervals per year, i.e. 52 (weekly) or 12
(monthly)
Contracted Weekly
Hours
The number of total hours that employee is required to work per week as
per their contract of employment.
Salary Sacrifice
Any salary sacrifice taken from the employee’s gross pay as per their
payslip, e.g. not subject to tax or National Insurance such as child care
vouchers or cycle-to-work schemes.
No of Paid Leave
Days
The total number of annual and statutory leave days that employee is
entitled to as per their contract of employment.
LED/R&D Employer
costs
Employer element of pension contribution for the pay interval.