New Salary Cap increased to $199,300, effective January 3, 2021

Notices: NIH: NOT-OD-21-057 and AHRQ: NOT-HS-21-007 

Release Dates: NIH: January 29, 2021 and AHRQ: January 12, 2021

Purpose: Increases the salary cap from $197,300 to $199,300 on FY21 HHS awards, effective January 3, 2020.

The Notice States:

The Further Consolidated Appropriations Act, 2021, Public Law 116-260 signed December 27, 2020 restricts the amount of direct salary which may be paid to an individual under an HHS grant, cooperative agreement, or applicable contract to a rate no greater than Executive Level II of the Federal Executive Pay Scale. Effective January 3, 2021, the Executive Level II salary level is $199,300.

For new awards from HHS, including NIH, the new salary cap is $199,300 starting January 3, 2021.

For awards already issued, "if adequate funds are available in the award, and if the FY2021 salary cap limitation is consistent with the institutional base salary, grantees may re-budget funds to accommodate the FY2021 salary cap effective January 5, 2021." However, "No additional funds will be provided for [these] grant awards."

For a historical record of the salary caps, including effective dates, visit NIH's Salary Cap Summary (FY 1990 - Present).

If you have any questions, please contact your SRA.