Department of Health and Human Services (HHS) Salary Cap
The new salary cap impacts all HHS agencies, including NIH, CDC, FDA, ACF, CMS, HRSA, AHRQ and SAMHSA. At this point, we have only received guidance from NIH on how to implement the cap. We will provide any additional HHS agency guidance as it is provided. In the meantime, the University is following NIH guidance for all HHS agencies.
NIH Salary Cap Guidance Changes
The NIH has issued salary cap guidance. Please read the notice carefully. Below is a high-level summary.
- Competing grant applications and contract proposals that include a categorical breakdown in the budget figures/business proposal should continue to reflect the actual institutional base salary of all individuals for whom reimbursement is requested. In lieu of actual base salary, however, applicants/offerors may elect to provide an explanation indicating that actual institutional base salary exceeds the current salary limitation. When this information is provided, NIH staff will make necessary adjustments to requested salaries prior to award.
- The salary limitation does NOT apply to payments made to consultants under an NIH grant or contract although, as with all costs, those payments must meet the test of reasonableness and be consistent with institutional policy.
- The salary limitation provision DOES apply to subawards/subcontracts for substantive work under an NIH grant or contract.
Fed FY 2014
Cap Change Date: January 12th, 2014 - $181,500; October 1st, 2013 - $179,700
- All funds issued prior to January 12th, 2014 may be re-budgeted to allow for the rate increase.
- A prorated figure of $180,861 will be used for the month of January.
- Any remaining funds at the UW still subject to Executive Level I are not impacted by this change.