For FY 2015, the Consolidated and Further Continuing Appropriations Act, 2015 (Public Law 113-235), signed into law on December 16, 2014, restricts the amount of direct salary to Executive Level II of the Federal Executive pay scale. The Executive Level II salary is currently set at $181,500, increasing to $183,300 effective January 11, 2015.
Implementation of salary limitation for NIH grant and cooperative agreement awards and extramural research and development contract awards:
- No adjustments will be made to modular grant applications/awards or to previously established commitment levels for non-competing grant awards issued with FY 2015 funds.
- NIH competing grant awards with categorical budgets reflecting salary levels at or above the new cap(s) that are issued on or after the January 11, 2015 effective date, will reflect adjustments to the current and all future years so that no funds are awarded or committed for salaries over the limitation.
- For awards issued in those years that were restricted to Executive Level II (see Salary Cap Summary, FY 1990 – FY 2015), including competing awards already issued in FY2015, if adequate funds are available in active awards, and if the salary cap increase is consistent with the institutional base salary, grantees may rebudget to accommodate the current Executive Level II salary level and contractors may charge at the higher level. However, no additional funds will be provided to these grant awards and the total estimated cost of the contract will not be modified.
- An individual's base salary, per se, is NOT constrained by the legislative provision for a limitation of salary. The rate limitation simply limits the amount that may be awarded and charged to NIH grants and contracts. An institution may pay an individual's salary amount in excess of the salary cap with non-federal funds.
- The salary limitation does NOT apply to payments made to consultants under an NIH grant 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.
http://grants.nih.gov/grants/guide/notice-files/NOT-OD-15-049.html