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Office of Grants and Contracts
 

NIH, AHRQ and SAMHSA Salary Rate Cap

Office of Grants and Contracts


 

The Continuing Resolution for Fiscal Year (FY) 2008 Consolidated Appropriations Act (P.L. 110-161), which includes appropriations for the Department of Health and Human Services, restricts the amount of direct salary* of an individual under an NIH grant or cooperative agreement or applicable contract to Executive Level I of the Federal Executive Pay scale. Effective January 1, 2009, the salary rate cap for the National Institutes of Health (NIH), the Agency of Healthcare Research and Quality (AHRQ), and the Substance Abuse and Mental Health Services Administration (SAMHSA) has been increased to $196,700.

"Direct salary" has the same meaning as the term"institutional base salary." This legislation does not restrict the salary levels set by institutions. It restricts the rate at which an institution can charge salary compensation to the federal government for awards from NIH, AHRQ, and SAMHSA.

NIH Notice (NOT-OD-09-037): Salary Limitation on Grants, Cooperative Agreements and Contracts

Awards funded under prior years' appropriations are constrained by the salary rate cap that was legislated under that year's appropriations bill. Follow the grid below to determine which rate cap applies to your active budget.

Please note, for non-competing awards, NIH will not provide additional money to cover increases in the salary rate cap. However, if adequate funds are available, and if the salary rate cap increase is consistent with the institutional base salary, grantees may rebudget (and contractors may bill) to accommodate the increased salary rate levels that are appropriate to the fiscal year from which the funds are derived.

Current Award Began Between: Federal Fiscal Year Funds Application of NIH Salary Rate Cap
10/01/1998
and
09/30/1999
award falls under Federal FY 1999 funds

$125,900 from start date through 12/31/1999

$130,200 from 01/01/2000 through the duration of the use of FY 1999 dollars

10/01/1999
and
09/30/2000
award falls under Federal FY 2000 funds $136,700 from start date through 12/31/1999

$141,300 from 01/01/2000 through 12/31/2000

$145,100 from 01/01/2001 through the duration of the use of FY 2000 dollars

10/01/2000
and
09/30/2001
award falls under Federal FY 2001 funds

$157,000 from start date through 12/31/2000

$161,200 from 01/01/2001 through 12/31/2001

$166,700 from 01/01/2002 through the duration of the use of FY 2001 dollars

10/01/2001
and
09/30/2002
award falls under Federal FY 2002 funds

$161,200 from start date through 12/31/2001

$166,700 from 01/01/2002 through 12/31/2002

$171,900 from 01/01/2003 through the duration of the use of FY 2002 dollars

10/01/2002
and
09/30/2003
award falls under Federal FY 2003 funds

$166,700 from start date through 12/31/2002

$171,900 from 01/01/2003 through the duration of the use of FY 2003 dollars

10/01/2003
and
09/30/2004
award falls under Federal FY 2004 funds

$171,900 from start date through 12/31/2003

$175,700 from 01/01/2004 through the duration of the use of FY 2004 dollars

10/01/2004
and
09/30/2005

award falls under Federal FY 2005 funds

$175,700 from start date through 12/31/2004

$180,100 from 01/01/2005 through the duration of the use of FY 2005 dollars

10/01/2005
and
09/30/2006
award falls under Federal FY 2006 funds

$180,100 from start date through 12/31/2005

$183,500 from 01/01/2006 through the duration of the use of FY 2006 dollars

10/01/2006
and
09/30/2007
award falls under Federal FY 2007 funds

$183,500 from start date through 12/31/2006

$186,600 from 01/01/2007 through the duration of the use of FY 2007 dollars

10/01/2007
and
09/30/2008

award falls under Federal FY 2008 funds

$186,600 from start date through 12/31/2007

$191,300 from 01/01/2008 through the duration of the use of FY 2008 dollars

10/01/2008
and
09/30/2009
award falls under Federal FY 2009 funds

$191,300 from start date through 12/31/2008

$196,700 from 01/01/2009 through the duration of the use of FY 2009 dollars

Explanation of Fiscal Years

  • Federal Fiscal Year 1999 (FY 1999) = Oct 1, 1998 through Sept 30, 1999
  • Federal Fiscal Year 2000 (FY 2000) = Oct 1, 1999 through Sept 30, 2000
  • Federal Fiscal Year 2001 (FY 2001) = Oct 1, 2000 through Sept 30, 2001
  • Federal Fiscal Year 2002 (FY 2002) = Oct 1, 2001 through Sept 30, 2002
  • Federal Fiscal Year 2003 (FY 2003) = Oct 1, 2002 through Sept 30, 2003
  • Federal Fiscal Year 2004 (FY 2004) = Oct 1, 2003 through Sept 30, 2004
  • Federal Fiscal Year 2005 (FY 2005) = Oct 1, 2004 through Sept 30, 2005
  • Federal Fiscal Year 2006 (FY 2006) = Oct 1, 2005 through Sept 30, 2006
  • Federal Fiscal Year 2007 (FY 2007) = Oct 1, 2006 through Sept 30, 2007
  • Federal Fiscal Year 2008 (FY 2008) = Oct 1, 2007 through Sept 30, 2008
  • Federal Fiscal Year 2009 (FY 2009) = Oct 1, 2008 through Sept 30, 2009
  • Implementation of New Salary Limitation

    • No adjustments will be made to modular grant applications/awards or to previously established commitment levels for non-competing grant awards issued with FY 2009 funds.
    • NIH competing grant awards with categorical budgets reflecting salary levels at or above the new cap(s) issued in FY 2009 will reflect adjustments to the current and all future years so that no funds are awarded or committed for salaries over the limitation.
    • For awards issued in those years restricted to Executive Level I (see Salary Cap Summary, [FY 1990 – FY 2008]), if adequate funds are available in active awards, and if the salary cap increase is consistent with the institutional base salary, grantees may rebudget to accommodate the current Executive Level I salary level and contractors may charge at the higher level. However, no additional funds will be provided to the prior year grant awards and the total estimated cost of the contract will not be modified.
    • An individual's base salary is NOT constrained by the legislative provision for a limitation of salary. The rate limitation simply limits the amount that may be awarded and charged to NIH grants and contracts. An institution may supplement an individual's salary with non-federal funds.
    • The salary limitation does NOT apply to payments made to consultants under an NIH grant or contract although, as with all costs, such payments must meet the test of reasonableness and be consistent with institutional policy.
    • The salary limitation provision DOES apply to subawards/subcontracts for substantive work under an NIH grant or contract.
    • COMPETING grant applications and contract proposals that include a categorical breakdown in the budget figures/business proposal should continue to reflect the actual institutional base salary of all individuals for whom reimbursement is requested. In lieu of actual base salary, however, applicants/offerors may elect to provide an explanation indicating that actual institutional base salary exceeds the current salary limitation. When this information is provided, NIH staff will make necessary adjustments to requested salaries prior to award.

    For additional information and Frequently Asked Questions (FAQ), please see the NIH Notice (NOT-OD-08-035).

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