Examples of Salary Cap Calculations

WHEN SALARY CAPS CHANGE DURING A BUDGET PERIOD




NIH will fund salaries up to the level of the funding limitation in place 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.

The following examples illustrate how rebudgeting can be used to adjust salary levels affected by the NIH cap.
"GFY" = Government Fiscal Year.

Always check to see that you are using the applicable salary cap. [Will open table in separate browser window.]


EXAMPLE 1

A 5-year competitive award was made on 4/20/98 (GFY98) with a salary funding limitation of $125,000. The project period for this award is 5/1/98 - 4/30/03.

On 5/1/99 (GFY99) and 5/1/00 (GFY00), non-competing funding for this project is awarded. In both of those Government Fiscal Years, a higher salary cap threshold exists. Although dollars will not be awarded above the original funding limitation level of $125,000, awarded funds may be rebudgeted so that salaries can be paid up to the level of that year's salary cap.

The details below illustrate how this rebudgeting could take place. Rebudgeting depends on the availability of project funds and the discretion of the Principal Investigator.

YEAR 2 funded in GFY99
Period Funding Limitation Applicable Salary Cap
5/1/99 - 12/31/99 $125,000. $125,900.
1/1/00 - 4/30/00 $125,000. $130,200.
 

In GFY99, non-competing funding is awarded for the Year-2 budget period that will span from 5/1/99 - 4/30/00. For that budget period, you may rebudget with existing project dollars to pay salaries up to a higher level. No additional funds will be provided from NIH for this purpose.

For the period 5/1/99 - 12/31/99, salaries can be rebudgeted to an annual rate of $125,900. From 1/1/00 to the end of the budget period on 4/30/00, salaries can be rebudgeted up to an annual rate of $130,200.

YEAR 3 funded in GFY00
Period Funding Limitation Applicable Salary Cap
5/1/00 - 4/30/01 $125,000. $141,300.
 

When the next year's funding is received (GFY 2000 funding), you may rebudget salaries up to the annual rate of $141,300.

YEAR 4 funded in GFY01
Period Funding Limitation Applicable Salary Cap
5/1/01 - 4/30/02 $125,000. $161,200.
 

When the GFY 2001 funding is received, you may rebudget salaries up to the annual rate of $161,200. Remember that the NIH will not award any additional funds to pay salaries at these higher levels.

 

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EXAMPLE 2

A 3-year competitive award was made on 10/15/98 (GFY99) with a salary funding limitation of $125,900. The project period for this award is 10/1/98 - 9/30/01.

On 10/1/99 (GFY99) and 10/1/00 (GFY00), non-competing funding for this project is awarded. In both of those Government Fiscal Years, a higher salary cap threshold exists. Although dollars will not be awarded above the original funding limitation level of $125,900, awarded funds may be rebudgeted so that salaries can be paid up to the level of that year's salary cap.

The details below illustrate how this rebudgeting could take place. Rebudgeting depends on the availability of project funds and the discretion of the Principal Investigator.

YEAR 2 funded in GFY00
Period Funding Limitation Applicable Salary Cap
10/1/99 - 12/31/99 $125,900. $136,700.
1/1/00 - 9/30/00 $125,900. $141,300.
 

In GFY00, non-competing funding is awarded for a budget period that will span from 10/1/99 - 9/30/00. For that budget period, you may rebudget existing project dollars to pay salaries up to a higher level. No additional funds will be provided from NIH for this purpose.

From 10/1/99 - 12/31/99, salaries can be rebudgeted up to an annual rate of $136,700. From 1/1/00 to the end of the budget period on 9/30/00, salaries can be rebudgeted up to an annual rate of $141,300.

YEAR 3 funded in GFY01
Period Funding Limitation Applicable Salary Cap
10/1/00 - 12/31/00 $125,900. $157,000.
1/1/01 - 9/30/01 $125,900. $161,200.
 

In GFY01, non-competing funding is awarded for a budget period that will span from 10/1/00 - 9/30/01. For that budget period, you may rebudget existing project dollars to pay salaries up to a higher level. No additional funds will be provided from NIH for this purpose.

From 10/1/00 - 12/31/00, salaries can be rebudgeted up to an annual rate of $157,000. From 1/1/01 to the end of the budget period on 9/30/01, salaries can be rebudgeted up to an annual rate of $161,200.

 

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EXAMPLE 3

A 5-year competitive award was made on 11/15/99 (GFY00) with a salary funding limitation of $136,700. The project period for this award is 12/1/99 - 11/30/04.

Within GFY00, the salary cap increases and you may rebudget existing project dollars to pay salaries up to a higher level. No additional funds will be provided from NIH for this purpose.

The details below illustrate how this rebudgeting could take place. Rebudgeting depends on the availability of project funds and the discretion of the Principal Investigator.

YEAR 1 funded in GFY00
Period Funding Limitation Applicable Salary Cap
12/1/99 - 12/31/99 $136,700. $136,700.
1/1/00 - 11/30/00 $136,700. $141,300.
 

From 1/1/00 to the end of the budget period on 11/30/00, salaries can be rebudgeted up to an annual rate of $141,300.

YEAR 2 funded in GFY01
Period Funding Limitation Applicable Salary Cap
12/1/00 - 12/31/00 $136,700. $157,000.
1/1/01 - 11/30/01 $136,700. $161,200.
 

From 12/1/00 to the end of the budget period on 11/30/01, salaries can be rebudgeted as follows: for the month of December 2000, salaries can be rebudgetted up to $157,000, and for the months from January - November 2001, salaries can be rebudgetted up to $161,200.

Years 3-5 rebudgeting will depend on the salary cap(s) set for the next GFY funding periods.

 

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