salary cap, salary limitation

4.2.9 Salary Cap/Salary Limitation

None of the funds appropriated in the governing appropriation Act for NIH (the Act), shall be used to pay direct salaries (individuals working directly on NIH projects) or indirect salaries (executive salaries in various uncapped cost pools) through a grant or other extramural mechanism at a rate in excess of that prescribed in the Act. Applications and proposals reflecting salaries of individuals in excess of the rate prescribed in the Act will be adjusted in accordance with the legislative salary limitation. Recipients may not draw down funds, whether direct or indirect, to pay salaries above the salary rate limitation, and recipients must have established policies and procedures that are consistently applied regardless of the source of funds. Current and historical information on the applicable salary cap for each fiscal year is on the Salary Cap Summary page of the NIH Grants & Funding website.