Compensation for personal services covers all amounts paid currently or accrued by the institution for services of employees rendered during the period of performance under sponsored agreements. Such amounts include salaries, wages, and fringe benefits. These costs are allowable to the extent that the total compensation to individual employees conforms to the established policies of the institution, are consistently applied, and provided that the charges for work performed directly on sponsored agreements  - OMB Circular A-21

Principal Investigators and Other PSU Faculty
A sponsored project should be charged with a portion of each employee's salary equal to the portion of time or effort devoted directly to the project. For a faculty member with a nine-month appointment, one month of effort is one-ninth of his/her academic year salary. Salary for existing PSU employees is distributed to sponsored projects through completion of the Labor Distribution Form.

OMB Circular A-21 Section J.10.d: Charges for work performed on sponsored agreements by faculty members during the academic year will be based on the individual faculty member's regular compensation for the continuous period which, under the policy of the institution concerned, constitutes the basis of his salary. Charges for work performed on sponsored agreements during all or any portion of such period are allowable at the base salary rate. In no event will charges to sponsored agreements, irrespective of the basis of computation, exceed the proportionate share of the base salary for that period. This principle applies to all members of the faculty at an institution. 

Summer Salary
Most sponsors will provide for compensation of faculty members with nine-month salary bases during summer months at their regular University salary rates when included as part of the project proposal. The maximum summer salary that can be earned from all sources, including instructional effort, is the equivalent of three (3) months of the 9-month academic year salary.  Summer salary is charged to sponsored projects through completion of a Summer Wage Agreement.

Graduate research assistants receive a salary/stipend processed via a Graduate Research Assistant Letter of Offer and associated tuition remission processed through the Student Fee Remission Application on-line system. [To obtain access to the system contact Financial Aid at or contact your Grants & Agreements Team in SPA for additional information.] 

Research Assistants, Research Associates (Including Post-Docs)

Undergraduate Students

Other Hourly or Part-time Employees
Supplemental Compensation -  Sponsored project funds may not be used to increase the regular compensation of the principal investigator or other full time staff member employed on a project unless exceptional circumstances exist as described in the Oregon University System Financial Accounting Standards Manual (FASOM) which states:

and for Federal awards as described in (OMB Circular A-21) Section J.10.d. which states:

Since intra university consulting is assumed to be undertaken as a university obligation requiring no compensation in addition to full time base salary, the principle also applies to faculty members who function as consultants or otherwise contribute to a sponsored agreement conducted by another faculty member of the same institution. However, in unusual cases where consultation is across departmental lines or involves a separate or remote operation, and the work performed by the consultant is in addition to his regular departmental load, any charges for such work representing extra compensation above the base salary are allowable provided that such consulting arrangements are specifically provided for in the agreement or approved in writing by the sponsoring agency.