The salary cap, or salary limitation rate, applies to any individual whose salary is charged directly to awards from these agencies. The rates are set by the U.S. Congress as part of the annual federal budget appropriations process. The Federal Executive Pay scale changes January 1 each calendar year. Effective January 1, 2024, the salary limitation for Executive Level II is $221,900. 

The salary cap limits the rate of academic and summer salary that may be charged to NIH, SAMHSA, and AHRQ awards. Brown University considers academic or calendar year salary in excess of the imposed cap as mandatory cost sharing. The amount in excess of the cap cannot be used as matching funds. The University may pay an employee’s salary amount in excess of the salary cap from non-sponsored project funds. 

NIH will fund the salary cap at the level in effect at the time the competitive award is issued. If, during the period of that award, the salary cap is increased, under applicable rebudgeting authority the salary may be paid at the higher level. NIH, however, will not award any additional funds for this purpose.

• View Current and Past NIH Salary Caps
• View Brown’s Salary Cap Policy

Brown will comply with all salary cap requirements of sponsors making awards to the University in support of research or other activities. Where an agency specifies a maximum rate at which an individual may be paid from that agency’s funds, Brown will ensure that any salary above that rate will not be charged against the grant, contract or cooperative agreement issued by that agency. Salary in excess of the salary cap is considered mandatory cost sharing and should be identified during the proposal phase of an award.

Proposal Stage

It is Brown’s policy that documentation related to all awards from NIH, SAMHSA and AHRQ with individuals whose salary is above the salary cap include the Salary Cap Worksheet. Additional guidance is provided below.

Award Stage

Once an award has been made, the costing allocation is submitted through Workday and the salary reflected on the costing allocation must conform to the applicable salary cap in effect.

When preparing the costing allocation, the monthly salary amount charged to an NIH award during the academic year and/or summer cannot exceed the NIH monthly cap rate multiplied by the percentage of effort.

The completed Salary Cap Worksheet must be attached to the costing allocation in Workday.  

Effort Certification Report

When completing effort reports, the reported percentage of effort for an individual over the salary cap must represent a reasonable estimate of effort expended on the project, not the percentage of salary charged. This percentage must include the effort that could not be charged to the award because of the salary cap. View the NIH Salary Cap Policy for details.

Institutional Base Salary

Institutional Base Salary is the total guaranteed annual compensation an individual receives from Brown University. This number is used to compute salaries charged to NIH-sponsored programs. The Institutional Base Salary should include an individual’s academic year salary as well as any stipend received from performing other administrative duties, whether as a center director, department chair or program director.

Salary Cap Roles and Responsibilities

Principal investigators (PIs)

are responsible for managing project funds in compliance with sponsor requirements; ensuring appropriateness and accuracy of effort expended on a sponsored project; and ensuring compliance with any salary limitations imposed by sponsors.

Department administrators

are responsible for establishing effective policies and controls to ensure compliance with this policy; identifying all individuals whose salary is over the cap; preparing proposals and applicable documents in accordance with policies and procedures; and ensuring compliance with any salary limitations imposed by sponsors.

The Office of Sponsored Projects

is responsible for maintaining communications with funding agencies to assure understanding of agency requirements; developing and implementing salary cap policies, procedures and training sessions in accordance with sponsor regulations; reviewing proposals, awards and other associated documents to ensure compliance with policies and procedures; and ensuring compliance with any salary limitations imposed by sponsors.