How Is the NIH Salary Cap Applied?
The cap establishes a maximum annual rate of pay at which an individual can be compensated for full time committed over a twelve-month period. Salary charges to a sponsored research award from the (HHS) agencies cited above cannot be paid at a monthly rate that exceeds 1/12th of the maximum annual rate of pay then in effect. The capped rate in effect as of January 1, 2010 is increased to $199,700. This means that salary paid on or after January 1, 2010 cannot be paid at a monthly rate that exceeds $16,641.66.