As of December 27, 2012, per Executive Order, the Executive Level (EL) II salary cap was increased to $180,600. 

OSP and other UW offices have received several questions about what this means for preparation of new proposals, for continuation funding under existing grants, as well as options exercised by a DHHS agency under an existing contract. 

Based on guidance from the NIH policy office, UW encourages calculation of salaries based on the actual institutional base salary (IBS), knowing that NIH (and other PHS agencies) will adjust funding per the policy in effect at the time the award is made.  PHS federal flow-through funding is subject to the same policies as well.  Therefore, proposals submitted as part of another institution’s proposal to a PHS agency should use the same guidance, unless instructed otherwise by the sponsor.

Currently, NIH is under a continuing resolution (CR), and all funding issued under the CR remains subject to the EL II cap of $179,700. 

Our guidance regarding calculations of salary requests on NIH proposals is found here: http://www.washington.edu/research/index.php?page=prepareProposal

NIH’s notice regarding operations under a Continuing Resolution (as well as its update as of January 2, 2013 of the same) is found here: http://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-002.html