National Institutes of Health Salary Cap Increase

The National Institutes of Health (NIH) has increased the NIH Salary Cap for Executive Level II to $203,700, effective January 2, 2022. The salary cap is a mandated provision of Congress that limits the amount of direct salary that can be charged to an NIH grant or contract. Salaries above the $203,700 limit must be allocated to the impacted grants cost share fund (281XXX).

The previous salary cap of $199,300 must still be used for all effort reporting periods prior to December 31, 2021, and for the period from January 1-3, 2022. Effective January 3, 2022, the new, higher rate can be used. To appropriately allocate the new salary cap, you will need to pro-rate, via a labor redistribution, the cost sharing of salaries for the month of January 2022 based on the effective date of the increase.

For active awards restricted to Executive Level II, including competing awards already issued in FY2022, if adequate funds are available, and if the salary cap increase is consistent with the institutional base salary, grantees may re-budget funds to accommodate the current Executive Level II salary level. However, no additional funds will be provided to these grant awards.

You can read the full context of the guidance and a historical record of the salary cap, including effective dates, on the NIH website.

If you have any questions regarding the new rates, please contact ras@drexel.edu.