What is the NIH salary cap?
The federal Consolidated Appropriations Act limits the rate at which
salaries are paid under sponsored research awards funded by certain agencies of
the Department of Health and Human Services (HHS). Since the implementation of
the cap in 1989, salary limits have been imposed on awards made by the National
Institutes of Health (NIH), and the Substance Abuse and Mental Health Services
Administration (SAMHSA). Beginning with the FY 2002 Appropriations Act, the cap
was applied to the Agency for Healthcare Research and Quality (AHRQ)
awards.
What is the basis for the NIH Salary Cap?
The cap is tied to levels of the Federal Executive Pay scale specified
within the Consolidated Appropriations Act. Since FY 2001 the cap has been set
at the Executive Level I. It currently remains at that level.
How is the NIH Salary Cap applied?
The cap establishes a maximum annual rate of pay at which an individual can
be compensated for full time committed over a twelve-month period. Salary
charges to a sponsored research award from the (HHS) agencies cited above
cannot be paid at a monthly rate that exceeds 1/12th of the maximum annual rate
of pay then in effect. The capped rate in effect as of January 1, 2008 is
increased to $191,300. This means that salary paid on or after January 1, 2008
cannot be paid at a monthly rate that exceeds $15,941.66.
How do you calculate the NIH Salary Cap for faculty with nine-month
appointments?
Compensation received by academic year faculty reflects the fact that
nine-month salary is paid out in twelve equal portions. Thus, for FY 2008
awards subject to the maximum rate of pay for full time effort of $191,300 for
work performed during the academic year will reflect a maximum 9 month salary
of $143,475.
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