Managing Salaries Over the Cap
A salary cap is a sponsor-imposed provision that limits the salary (excluding fringe and F&A costs) that can be direct-charged for individuals working on the sponsored project. Although the sponsor may cap the salary direct-charged to the project, it does not limit the salary that a faculty may receive for the work on the project – Duke is responsible for the difference (salary over the cap).
Important Reminders:
When entering the budget in SPS, SPS will automatically calculate the prorated salary for anyone over the salary cap.
Reporting is available in the Grants Management tab of Duke@Work to see detailed results at the faculty, project and effort month level.
Federal Sponsors
| Sponsor | Cap Applied |
|---|---|
| National Institutes of Health | DHHS Salary Cap |
| Administration for Children and Families | DHHS Salary Cap |
| Administration for Community Living | DHHS Salary Cap |
| Agency for Healthcare Research and Quality | DHHS Salary Cap |
| Center for Disease Control | DHHS Salary Cap |
| Health Resources & Services Administration | DHHS Salary Cap |
| Substance Abuse & Mental Health Services Administration | DHHS Salary Cap |
| Food and Drug Administration | DHHS Salary Cap |
Non-Federal Sponsors
| Sponsor | Cap Applied |
|---|---|
| Anesthesia Safety Foundation | DHHS Salary Cap |
| Cystic Fibrosis Foundation | DHHS Salary Cap |
| Michael J. Fox Foundation | DHHS Salary Cap |
| Edward P. Evans Foundation | DHHS Salary Cap |
| Juvenile Diabetes Research Foundation | DHHS Salary Cap |
| Multiple Sclerosis Society | $199,700 |
| Patient Centered Outcomes Research Institute | $200,000 |
| Susan G. Komen Foundation | $250,000 |
Prorating the Salary Cap
Current actual Institutional Base Salary (IBS) must be used as the basis for preparing budgets and calculating salaries in all applications for external funding (including NIH modular grants). If the current actual IBS is above the prorated salary cap in effect at the time, the IBS may be entered as ZERO. In this case, the budget justification MUST include a statement disclosing the fact that the IBS is over the cap. See Proposal, JIT, and RPPR Disclosure Statements.
Prorating for non-DHHS Sponsors
Some sponsors (other than NIH) may impose their own limitations on the amount of salary that can be direct charged to a sponsored project. Check the sponsor's policies and application guidelines to confirm whether the sponsor has any salary limitations, restrictions, or caps.
Prorating for DHHS agencies
The 2024 Federal appropriations act (Public Law 118-22) confirmed the continuation of the Executive Level II Salary rate cap for all US Department of Health and Human Services (DHHS) grants and contracts. The NIH issued NOT-OD-24-057 on 01/29/2024 announcing the new salary cap level, increasing from $212,100 to $221,900 for a 12-month appointment; the prorated level for 9-month faculty is $166,425. Effective immediately, this new Executive Level II salary cap should be used for all new applications for any DHHS-funded program.
12-Month Appointment Type
Unless the faculty member has a 100% 12-month Duke University appointment, the salary cap must be prorated using the faculty’s appointment type (12 month) and appointment percentage.
| Duke Appointment % | # of Available Calendar Months | Prorated DHHS Salary Cap |
|---|---|---|
| 100% | 12 | $221,900 |
| 95% | 11.4 | $210,805 |
| 90% | 10.8 | $199,710 |
| 85% | 10.2 | $188,615 |
| 80% | 9.6 | $177,520 |
| 75% | 9 | $166,425 |
| 70% | 8.4 | $155,330 |
| 65% | 7.8 | $144,235 |
| 60% | 7.2 | $133,140 |
| 55% | 6.6 | $122,045 |
| 50% | 6 | $110,950 |
| 45% | 5.4 | $99,855 |
| 40% | 4.8 | $88,760 |
| 35% | 4.2 | $77,665 |
| 30% | 3.6 | $66,570 |
| 25% | 3 | $55,475 |
| 20% | 2.4 | $44,380 |
| 15% | 1.8 | $33,285 |
| 10% | 1.2 | $22,190 |
9-Month Appointment Type
The salary cap must be prorated for all 9 month faculty using the faculty’s appointment type (9 month) and appointment percentage.
| Duke Appointment % | # of Available Calendar Months | Prorated DHHS Salary Cap |
|---|---|---|
| 100% | 9 | $166,425 |
| 95% | 8.55 | $158,104 |
| 90% | 8.1 | $149,783 |
| 85% | 7.65 | $141,461 |
| 80% | 7.2 | $133,140 |
| 75% | 6.75 | $124,819 |
| 70% | 6.3 | $116,498 |
| 65% | 5.85 | $108,176 |
| 60% | 5.4 | $99,855 |
| 55% | 4.95 | $91,534 |
| 50% | 4.5 | $83,213 |
| 45% | 4.05 | $74,891 |
| 40% | 3.6 | $66,570 |
| 35% | 3.15 | $58,249 |
| 30% | 2.7 | $49,298 |
| 25% | 2.25 | $41,606 |
| 20% | 1.8 | $33,285 |
| 15% | 1.35 | $24,964 |
| 10% | 0.9 | $16,643 |
Guidance for DHHS salary cap updates
Guidance for submitted proposals
For applications that displayed the institutional base salary (instead of the salary cap), the sponsor should calculate the allowable salary and award it at the rate in effect at the time of award. From the NIH Grants Policy Statement 4.2.10 Salary Cap /Salary Limitation: “Applications and proposals with categorical direct cost budgets reflecting direct salaries of individuals in excess of the rate prescribed in the Act will be adjusted in accordance with the legislative salary limitation.”
Guidance for proposals in "Initialized" state in SPS
Proposals in an "Initialized" state in SPS need to be updated with the new salary cap amount using the following steps:
| Go to the Salary Cap tab in the Budget > Setup notebook |  |
| Update the Salary Cap Amount to $221,900 and click Save |  |
| Click OK on the pop-up message |  |
| Go to the Salary tab of the Budget > View/Edit notebook and select the Update Calculated Amts button at the bottom of the page |  |
| Calculated amounts should now be updated and shown in yellow |  |
| Click Save | 
|
Go to the Summary Budget page tab of the Budget > View/Edit notebook and select Calculate F&A Costs. Click “Save” |  |
Guidance for active awards
No action is needed to implement the higher salary cap for active awards; as of February 1, the payroll cost share tool will automatically use the new level for current and future salary on all affected grants and subawards, while DHHS-funded contracts/subcontracts will continue using the salary cap in effect at time of initial contract issuance, per DHHS regulations.
For active awards, including awards that have been issued in FY 2024 (continuation and new), that were restricted to the previous Executive Level II, if adequate funds are available in active awards, and if the salary cap increase is consistent with the institutional base salary, funds may rebudgeted to accommodate the current Executive Level II salary cap.