New NIH salary cap guidance update

The 2023 Federal appropriations act (Public Law 117-328) confirmed the continuation of the Executive Level II Salary rate cap for all Department of Health and Human Services (DHHS) grants and contracts. The NIH issued NOT-OD-23-056 on 1/12/2023 announcing the new salary cap level, increasing from $203,700 to $212,100 for a 12-month appointment; the prorated level for 9-month faculty is $159,075.  Effective immediately, this new Executive Level II salary cap should be used for all new applications for any DHHS-funded program.

See the following information for additional guidance: 
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: “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 "initiated" 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 Go to the Salary Cap tab in the Budget>Setup notebook
Update the Salary Cap Amount to $212,100 and click Save Update the Salary Cap Amount to $212,100
If this message is received, click OK Click OK to this 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

 update calculated amounts
Calculated amounts should now be updated calculated amounts will update
Select Save save
Go to the Summary Budget page tab of the Budget>View/Edit notebook and select Calculate F&A Costs > select “Save” calculate f&a costs

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: “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 active awards

For active awards, including awards that have been issued in FY 2023 (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, recipients may rebudget funds to accommodate the current Executive Level II salary level.

Guidance for changes to cost share in SAP plans

To align SAP plans with SPS budgets, the payroll cost share plan amount related to the DHHS/NIH salary cap will no longer be reflected in SAP. The only cost share amounts entered in the SAP plan/budget column will be those that represent cost share committed to the sponsor, as included in the award agreement or SPS budget. As a reminder, Duke’s GAP 200.140 provides additional details on cost share processes and roles.