Although NIH has been issuing salary caps to recipients of federal research grants for over 20 years, this is the first year that the levels of the caps have been reduced. It is now restricted to Executive Level II of the Federal Pay Scale. Implementation of the lower level is effective with FY2012 awards where the initial Issue Date of the award is on/after 12/23/2011. For FY2012 awards issued on/before December 22, 2011, the salary limitation remains at Executive Level 1, $199,700.
The total base salary is not constrained by these caps, the rate limitation only limits the amount that can be awarded and charged to NIH grants and contracts. Any institution can pay an individual's salary amount in excess of the salary cap by using non-federal funds.
In addition, this salary limitation also does not apply to payments made to consultants under NIH grants or contract although, as with all costs, those payments must meet the test of reasonableness and be consistent with institutional policy.
Please see the NIH salary cap description and the time frames associated with salary caps. Harvard provides a high level summary of these limitations.
Questions concerning this notice or other policies relating to grants or contracts should be directed to the grants management or contracts management office in the appropriate NIH Institute or Center.
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