Sponsor Salary Rate Caps

Federal and Non-Federal Requirements and/or limitations

National Institutes of Health (NIH) Salary Cap

The NIH caps the rate at which salary can be charged to National Institutes of Health grants, cooperative agreements and contracts (with the exception of those that are clearly defined to be exempt from the cap). Congress legislatively mandates a provision for the limitation of salary.

• Effective January 1, 2024 the Executive Level II Salary Cap increased from $212,100 to $221,900. See: NIH NOT-OD-24-057: Guidance on Salary Limitations for Grants and Cooperative Agreements FY2024.
• NIH Salary Cap Summary FY1990-Present.
• Key point: You may re-budget existing funds (per NIH policies and procedures) to cover the increased salary cap level, but no additional funds will be provided by NIH to cover the increased salary expenses.
• Budgets created in IRES Proposal Development (PD) will automatically calculate the requested salary over the cap amount and move it to an ‘unallowable’ portion of the budget to ensure it is not submitted as part of our direct cost request. This does not require a Cost Share form.

Additional information

1315 PR.03 Salaries Above a Sponsor Imposed Rate Cap and Other Program Salary Limitations

Salary/Cost of Living Escalations in Project Out Years

It is Yale University general practice to budget for anticipated salary escalations in project out years however some specific agencies prohibit this:

• National Heart, Lung, Blood Institute
• National Institute on Aging
• National Institute of Child Health and Human Development
• Agency for Healthcare Research & Quality

Do other Sponsors also have Salary Caps?

Yes, the following list details those sponsors with a known salary cap; however, this list is not exhaustive and you should always read the sponsor guidelines to confirm if your specific sponsor has a set salary cap. Also review guidelines for non-federal sponsors with known salary caps as they may not require a salary cap for certain funding opportunities. If the sponsor has a published policy, Yale University will abide by that policy and this will not require a Cost Share form, unless specific funding opportunity guidelines from the sponsor allow for full salary to be included.

Sponsor - Federal

Sponsor - Non Federal