NIH Salary Cap

NIH Policy Notice Updates

NIH has updated policy notices, and those changes may affect your review and management of awards:

February 2021

The Executive Level II salary cap previously set at $197,300 increased to $199,300 effective January 3, 2021. Institutions can rebudget, where appropriate, salaries at the Execute Level II level on existing awards. No additional funds will be provided.  

As in years past, MIT will utilize the new cap starting with the first pay period after notification, February 1, 2021  If you do adjust your salaries, please keep in mind:

  • The associated EB and F&A charges will also increase relative to the increase salary costs.
  • You should also review your cost sharing templates and make updates as needed.

As a reminder, the salary cap increase must be  consistent with the current salary in place and no additional funds will be provided.  

For more information, please see: 

Please also note, the NRSA stipends levels have also increased. See https://grants.nih.gov/grants/guide/notice-files/NOT-OD-21-049.html

Key Resources

Salary Cap Summary (FY 1990 - Present)

Guidance on Salary Limitation for Grants and Cooperative Agreements FY 2020

NIH Salary Cap

For the past several years, the annual Congressional appropriation for the Health and Human Services (NIH) budget has restricted the amount of direct salary of an individual on a grant, cooperative agreement or contract to a designated salary rate. The caps apply to awards issued during the Federal fiscal year for which the appropriation was made. Awards made during different Federal fiscal years are subject to different salary rate caps.

A summary of salary caps to date can be found at the NIH Office of Extramural Research website.