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Overhead

Indirect Cost Policy

The McMaster Indirect Cost Policy stipulates that overhead must be charged on research projects to assist in covering the costs associated with operating university facilities.  The chart below details the applicable overhead rate associated with various funding sources.  This is not meant to be a comprehensive summary but does provide the rates for the most common types of funding.

Funding Source

Indirect Cost Rate

Private Sector - Collaborative Research Agreement

40% of total direct costs

Private Sector – Service Work

40% of total direct costs

Private Sector – Unrestricted Grant

25% of total direct costs

Federal Government

40% of total direct costs or 65% on salaries

NSERC Research Partnerships Programs

25% of total direct costs applied to industry contribution

Ontario Centres of Excellence (excluding VIP 1 and TalentEdge programs.  Contact MILO for guidance when applying)

30% of total direct costs applied to industry contribution

Provincial Government

40% of total direct costs

Municipal Government

40% of total direct costs

 

Please consult our office if you have any questions regarding overhead rates.  The reinvestment of overhead into the direct costs of a project is only applicable in rare and special circumstances.  Such reinvestment is subject to written approval by the Department Chair, Faculty Dean, and Vice-President of Research.  MILO has no authority in the reduction of overhead.