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(Last updated by NIH 1/15/08):
Every year since 1990 Congress has legislatively mandated a provision
limiting the direct salary that an individual may receive under an NIH
grant. For FY 2008, Public Law 110-161: Consolidated Appropriations
Act, 2008 restricts the amount of direct salary to Executive Level I of
the Federal Executive Pay scale. The Executive Level I annual salary rate was
$186,600 for the period January 1 through December 31, 2007. Effective
January 1, 2008, the Executive Level I salary level increased to
$191,300.
Guidance on other legislative mandates contained in P.L. 110-161 will be issued
in the near future.
For the purposes of the salary limitation, the terms "direct salary," "salary,"
and "institutional base salary" have the same meaning and are exclusive of
fringe benefits and facilities and administrative (F&A) expenses, also
referred to as indirect costs. An individual's institutional base salary is the
annual compensation that the applicant organization pays for an individual's
appointment, whether that individual's time is spent on research, teaching,
patient care, or other activities. Base salary excludes any income that an
individual may be permitted to earn outside of the duties to the applicant
organization.
According to the Consolidated Appropriations Act 2005, "None of the funds
appropriated in this Act for the National Institutes of Health, the Agency for
Healthcare Research and Quality, and the Substance Abuse and Mental Health
Services Administration shall be used to pay the salary of an individual,
through a grant or other extramural mechanism, at a rate in excess of Executive
Level I of the Federal Executive Pay Scale."
For more information on the NIH Salary Cap please go to the following
website: http://grants.nih.gov/grants/guide/notice-files/NOT-OD-08-035.html
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