How should the salary cap be addressed in NIH grant applications?
NIH competing grant applications (new and renewal) are typically submitted six to nine months before the start date. The salary cap rates are generally not set until some time around January 1 each year. Generally, when the proposal is being prepared, it is not possible to know what the salary cap amount will be at the time an award is made. Therefore, the NIH instructions for calculating grant budgets are to use the PI’s actual salary, adjusted for anticipated increases in rank and cost of living increases. When the grant is awarded, the NIH will adjust the approved budget to reflect the salary cap in effect when the grant begins. This means that the total amount of the grant funds awarded may be reduced accordingly. However, whether NIH adjusts the budget or not, the salary cap applies.
