Sponsor Salary Caps–National Institutes of Health (NIH)

Sponsor Salary Caps–National Institutes of Health (NIH)

Salary caps are limitations, sponsor-imposed ceilings, on the amount of an individual’s salary that a sponsor will directly support. When an employee’s institutional base salary (IBS) exceeds the effective salary cap the University must fund the difference from non-federal sources. This difference is considered cost share (this cost share is solely for purposes related to the Indirect/Facilities and Administrative – F&A- cost rate calculations and is not to be counted/claimed/reported toward mandatory or voluntary cost share commitments) to that sponsored activity. The associated effort is expected to be captured on the effort report for certification purposes (toward 100% ‘University effort’). Annual salary caps can be found at the NIH website.