Effective January 3, 2021 the DHHS Executive Level II salary rate limitation is $199,300. The equivalent Academic 10-month salary limitation is now $149,475.
This salary limitation applies to the institutional base salary rate of pay. Therefore, the salary limits are applied relative to the FTE and effort percentage charged to an award.
Example
A full time 12-month employee earning in excess of the $199,300 salary limitation, and working 50% on an NIH grant, must apply the limitation on a pro-rated basis. In this example, only $99,650 ($199,300*0.50) may be charged to the NIH grant.
From the "NIH Guide for Grants and Contracts"
Guidance on Salary Limitation for Grants and Cooperative Agreements FY 2021
Notice Number: NOT-OD-21-057
Release Date: January 29, 2021
Salary Limitation on AHRQ FY 2021 Grants, Cooperative Agreements, and Contracts
Notice Number: NOT-HS-21-007
Release Date: January 12, 2021
DHHS Salary Limitation - 12 Month and Academic Year
| From | To | 12 Months | AY* |
| January 3, 2021 | September 30, 2021 | $199,300 | $149,475 |
| October 1, 2020 | January 2, 2021 | $197,300 | $147,975 |
| From | To | 12 Months | AY* |
| January 5, 2020 | September 30, 2020 | $197,300 | $147,975 |
| October 1, 2019 | January 4, 2020 | $192,300 | $144,225 |
*Academic Summer pay is subject to the same rate as the Academic Year Salary
Please visit the Office of Research Administration website for additional information and examples: NIH Salary Cap
Impact on Upcoming Proposal Deadlines
It is the unit's choice whether or not to make adjustments reflecting the new salary cap for initiated proposal submissions that have not yet routed to the Office of Research Administration (ORA) for the February 5, 2021 deadline; however the VPR Internal Submission Deadline Policy still applies.