Salary Caps
The difference between the allowable salary charged (the capped amount) and the unreimbursed salary (the amount above the cap) must be funded by an unrestricted/local account and recorded as cost share. The PI/other key personnel must still devote the full identified level of effort committed in the proposal. It is important to review sponsor policies/guidelines to determine whether a salary cap applies to an identified funding opportunity. NIH's current salary cap levels can be found on their Salary Cap Summary page.
Calculate annualized base salary.
- contract salary ÷ # contract months = monthly salary
- $225,700 ÷ 9 months = $25,077.78
- monthly salary x 12 calendar months = annualized base salary
- $25,077.78 x 12 = $300,933.33
Determine total person months and calculate total salary committed to project.
- monthly salary x # of person months = total committed salary
- $25,077.78 x .75 = $18,808.33
Calculate and identify total requested salary and total above cap salary.
- [annualized base salary - sponsor salary cap] ÷ annualized base salary = % above cap salary
- committed salary x % above cap salary = above cap salary (must be charged to non-grant funds)
- committed salary - above cap salary = requested salary (allowable amount on grant)
Enter base salary, person months and requested salary on sponsor budget form.
Include a statement in budget justification indicating PI/other Key Personnel are over the salary cap and requested salary is adjusted accordingly. Supporting information such as an individual's base salary and appointment period may be included.