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The Public Health Service (PHS, which includes the National Institutes of Health) is governed by regulations establishing a maximum salary that may be awarded to a project participant (a salary cap). Stanford policy relating to salary caps is found in Chapter 3 of the Research Policy Handbook.
Stanford will comply with all agency requirements in this regard. Where an agency specifies a maximum rate at which an individual may be paid from that agency's funds, Stanford will ensure that any salary above that rate will not be charged to the agency.
The National Institutes of Health (NIH) announced a change to the Public Health Service salary cap policy in 1998. The dollar amount of the cap is indexed to selected Executive Pay Levels, established by the Federal Government, and may vary for each Government Fiscal Year in which funds are awarded. The cap amount is the maximum annual rate of salary that the NIH will allow to be paid to an individual from their funds.
The current schedule of applicable salary caps for NIH awards, as defined in NIH NOTICE: NOT-OD-09-037 dated January 16, 2009, is as follows:
Government FY 2009 Awards
(Oct 1, 2008 - Sept 30, 2009) |
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| received 10/1/08 - 12/31/08 |
$191,300 |
| received 1/1/2009 and beyond |
$196,700 |
Government FY 2008 Awards
(Oct 1, 2007 - Sept 30, 2008) |
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| received 10/1/07 - 12/31/07 |
$186,600 |
| received 1/1/2008 and beyond |
$191,300 |
Government FY 2007 Awards
(Oct 1, 2006 - Sept 30, 2007) |
|
| received 10/1/06 - 12/31/06 |
$183,500 |
| received 1/1/2007 - 12/31/07 |
$186,600 |
Government FY 2006 Awards
(Oct 1, 2005 - Sept 30, 2006) |
|
| received 10/1/05 - 12/31/05 |
$180,100 |
| received 1/1/2006 - 12/31/06 |
$183,500 |
Government FY 2005 Awards
(Oct 1, 2004 - Sept 30, 2005) |
|
| received 10/1/04 - 12/31/04 |
$175,700 |
| received 1/1/2005 - 12/31/05 |
$180,100 |
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See NIH summary for prior years.
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QUESTIONS?
Any questions about salary caps may be directed to the Director, Research Management Group in the School of Medicine.
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- GENERAL PRINCIPLES
In preparing an NIH proposal budget, for example, when one of the key personnel to be paid on the project earns an annual salary above the NIH cap, keep the following general principles in mind:
- The salary cap applies to the total institutional salary paid to the individual. If a faculty member earning more than the cap will charge 50% of her salary to a project, the salary charge is 50% of the cap amount - not the full salary.
- An individual's total Stanford salary is defined as the pay which an individual receives upon which benefits are calculated. In the School of Medicine, for example, this includes base pay and clinical components. Sabbatical pay, however, is NOT included as part of base salary.
- Salary dollars above a salary cap level are unallowable costs, but they must be tracked and accounted for as part of Stanford's Organized Research Base. We accomplish this by using a special Expenditure Type 51190, "Regular Benefits Eligible (RBE) Unallowed Salary over a Cap," on the Oracle Labor Distribution Labor Schedule, which allocates salary costs.
- NIH will fund the salary cap at the level in effect at the time of the competitive award. If, during the period of that award, the salary cap is increased, you will normally be able to use rebudgeting authority to pay the salary to the higher level. NIH however will not award any additional funds for this purpose. (See rebudgeting examples.)
- ILLUSTRATIONS AND EXAMPLES
Use the links below to see examples of the calculation of salary caps in the following situations:
These situations are presented as illustrations only. Salary caps are subject to periodic change. Always use the current applicable cap (see schedule above).
If you have a situation in which a faculty member earning over the salary cap has a joint Stanford/Veteran's Administration appointment, contact the Research Process Manager for your Department or the Research Management Group in the School of Medicine.
- CORRECTIONS
If the amount over the cap has not been properly captured in the past, the Expenditure Type 51190, "Regular Benefits Eligible (RBE) Unallowed Salary over a Cap," can be used in journal transfers to accomplish a correction. For salary earned prior to 4/1/05, use a Salary iJournal; for salary earned after 3/31/05, use an Oracle Labor Distribution Adjustment.
- CALCULATION TEMPLATES
The following calculation templates are Excel spread sheets, and when you select one, it will open in Excel on your computer. Download the applicable spreadsheet to your desktop and use it to calculate actual salary caps and salary charges in the following situations:
FOR INDIVIDUAL AWARDS
FOR MULTIPLE AWARDS
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