National Institutes of Health Salary Cap Increase

The National Institutes of Health (NIH) has increased the NIH Salary Cap for Executive Level II of the Federal Executive Pay Scale to $221,900 effective January 1, 2024. 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 $221,900 limit must be allocated to the impacted grants cost share fund (281XXX).

The previous salary cap of $212,100 must still be used for all effort reporting periods prior to December 31, 2023.

For active awards restricted to Executive Level II, including competing awards already issued in FY2024, 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