NIH Salary Cap Increase

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The National Institutes of Health (NIH) has increased the NIH Salary Cap for Executive Level II to $228,000, effective January 1, 2026, through September 30, 2026. The salary cap is a mandated provision of Congress that limits the amount of salary an individual can charge to an NIH grant or contract. Salaries above the $228,000 limit must be allocated to the impacted grant’s cost share fund.

The previous salary cap of $225,700 must be applied for all awards issued during the period October 1, 2025, through December 31, 2025.

For active awards restricted to Executive Level II, including competing awards already issued in FY2026, if adequate funds are available, and if the salary cap increase is consistent with the institutional base salary, grantees may rebudget funds to accommodate the current Executive Level II salary level. However, no additional funds will be provided for 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.