NIH Salary Cap

NIH Policy Notice Updates

NIH has updated policy notices, and those changes may affect your review and management of awards:

  • March 2017: NIH issued Interim Guidance on the Salary Cap for Grants and Cooperative Agreements. The Executive Level II salary increased to $187,000 effective January 8, 2017. Institutions can rebudget, where appropriate, salaries at the Execute Level II level. No additional funds will be provided. NIH will issue additional guidance once the Department of Health and Human Services Appropriations for FY17 is enacted. If you adjust your salaries, please keep in mind:
    • The associated EB and F&A charges will also increase relative to the increased salary costs.
    • You should also review your cost sharing templates and make updates as needed.

Below is the notice which gives more information. Please contact your Contract Administrator should you need further information.

NIH Salary Cap

For the past several years, the annual Congressional appropriation for the Health and Human Services (NIH) budget has restricted the amount of direct salary of an individual on a grant, cooperative agreement or contract to a designated salary rate. The caps apply to awards issued during the Federal fiscal year for which the appropriation was made. Awards made during different Federal fiscal years are subject to different  salary rate caps.

A summary of salary caps to date can be found at the NIH Office of Extramural Research website.

NSF Salary Policy for PIs and Co-PIs

The National Science Foundation announced a new Proposal and Award Policies and Procedures Guide (PAPPG) NSF 09-01 that is effective January 2009. The new policy limits faculty to two months of salary per year from all NSF sources unless specifically budgeted and approved by the NSF. It has removed the current requirement that faculty salary must be taken in the summer months.
NSF Salary Policy

Current NSF Consultant Rate

The annual Congressional appropriation for the National Science Foundation budget sets the maximum daily rate that may be paid to consultants on NSF awards at an amount equal to the current Executive Schedule Level IV for Federal employees.

The current year’s maximum is available at the NSF Division of Grants and Agreements Policy Office website.