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NIH Salary Cap Threshold Change Effective January 10, 2016

Notice Number: NOT-OD-16-045

Key Dates
Release Date: December 24, 2015

Related Announcements
NOT-OD-16-044

Issued by
National Institutes of Health (NIH)

Purpose

This Notice provides information regarding the salary limitation for NIH grant and cooperative agreement awards and extramural research and development contract awards (referred to here as grants). For FY 2016, the Consolidated Appropriations Act, 2016 (Public Law 114-113), signed into law on December 18, 2015, restricts the amount of direct salary to Executive Level II of the Federal Executive pay scale. The Executive Level II salary is currently set at $183,300, increasing to $185,100 effective January 10, 2016.

This change permits departments to charge more of an individual’s salary to grants thereby reducing the amount of salary cap cost sharing required. Departments may also choose not to increase the salary charges to grants if there are insufficient funds remaining in the grant budget to cover the additional charges, i.e., sponsors do not provide additional funding to cover the increase in the salary cap threshold for existing awards.