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NIH Salary Cap Increase 2017

March 22, 2017

The National Institutes of Health (NIH) has increased the NIH Salary Cap by 1% to $187,000 effective January 8, 2017. The salary cap is a mandated provision of Congress that limits the amount of salary that can be charged to an NIH grant or contract. Salaries above the $187,000 limit must be allocated to the impacted grant’s cost share fund (281XXX).

The previous salary cap of $185,100 must still be used for all effort reporting periods prior to December 31, 2016, and for the period from January 1, 2017, through January 7, 2017. Effective January 8, 2017, the new, higher rate can be used. In order 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 2017 based on the effective date of the increase.

Although NIH will not be adjusting awards already issued in FY 2017, re-budgeting will be allowed to reflect the increase in the salary cap.

The full context of the NIH guidance Notice Number NOT-OD-17-049 can be found at: grants.nih.gov/grants/guide/notice-files/NOT-OD-17-049.html.

If you have any questions regarding the changes to the NIH salary cap, please contact ras@drexel.edu.