NIH Salary Cap 2020

Effective January 5, 2020, the Executive Level II salary (previously set at $192,300) was increased to $197,300. For awards issued in years that were restricted to Executive Level II including competing awards issued in FY2020, if adequate funds are available on active awards, grantees may rebudget to accommodate the most current Executive Level II salary level. However, sponsors will not provide additional funding to cover the increase in the salary cap threshold for existing awards.

For the upcoming FEC Academic cycle of 9/15/2019 – 3/15/2020, eFECS has been programmed to use an average of the old and new salary caps to determine the salary cap cost sharing for this cycle.

Departments have two options:

  1. Rebudget to accommodate the new higher salary cap beginning January 5, 2020 (provided that funds are available in the existing awards), which will result in the FEC salary cap cost sharing being correct as it appears on the FEC.
  2. Continue to accommodate the previous lower salary cap ($192,300). This will require that prior to faculty certification, a manual adjustment be made to each budget subject to salary cap cost share on all FECs where the faculty’s earnings exceed the lower cap amount ($192,300 cap amount adjusted to the faculty’s Avg. paid FTE %). FEC coordinators should choose the pre-defined comment “Department chooses not to re-budget with new salary cap”. To determine the amount of cost share required for the lower (prior) salary cap, you may also utilize Salary Cap Calculator for adjusting an FEC that can be found on MAA website: https://finance.uw.edu/maa/fec/fectools.

FECs for the Calendar cycle of 01/01/2020 – 06/30/2020 will use the new salary cap threshold for the entire cycle when calculating the salary cap cost sharing.

For more information visit NIH website, https://grants.nih.gov/grants/guide/notice-files/NOT-OD-19-099.html