Guidance Regarding Salary Cap Reduction

The Consolidated Appropriations Act, 2012 (H.R. 2055) reduced the salary cap to Executive Level II ($179,700) for all Health & Human Services (HHS) agencies (excluding FDA and Indian Health Services), not only NIH, AHRQ and SAMSHA as in previous years.  NIH and AHRQ have issued detailed guidance regarding the applicability of the new salary cap (see below).

Executive Level I Salary Cap

12-month appointment = $199,700
9-month appointment = $149,775

Executive Level II Salary Cap

12-month appointment = $179,700
9-month appointment = $134,775

National Institutes of Health (NIH) and Agency for Healthcare Research and Quality (AHRQ) Guidance

Competing Awards

Awarded in FY2012 on/after October 1, 2011 and on/before December 22, 2011:
No adjustment will be made to the FY2012 award and the Executive Level I salary cap of $199,700 may continue to be charged;   However, future year commitments will be adjusted to reflect the Executive Level II salary cap of $179,700.

Awarded in FY2012 on/after December 23, 2011:
Arevised award will be issued and will adjust the current and all future year commitments to reflect the Executive Level II salary cap ($179,700).

Non-Competing Awards

Awarded in FY2012 on/after October 1, 2011 and on/before December 22, 2011:
No adjustment will be made to either the FY2012 award or any future year commitments and the Executive Level I salary cap of $199,700 may continue to be charged.

Awarded in FY2012 on/after December 23, 2011:
Executive Level II ($179,700) is the applicable salary cap for the current award  and future year commitments; for the FY2012 award, grantees may rebudget funds awarded in excess of the new salary limit.

Additional Resources:

 

*Any grants awarded in previous fiscal years are not impacted by the FY2012 salary cap.  Carrying over previous years’ funds to support salaries will remain at the salary cap levels in effect at the time those awards were issued.