NIH Salary Cap 2026: Current Limit and Calculator
Updated October 2026
When an investigator's institutional base salary exceeds the NIH salary cap, only the capped rate can be charged to the award. Enter the base salary, effort, and current cap to see the allowable charge and the over-the-cap amount your institution has to cover.
The base salary exceeds the cap, so the chargeable rate is limited to $228,000. Uncapped, the charge would be $75,000, so the $18,000 difference must come from non-federal funds.
The salary cap is set annually by appropriations law and tied to a federal Executive Level, so confirm the current rate before you budget. This tool is for planning, not official guidance.
How the NIH salary cap works
The salary cap is a ceiling on the rate of pay you can charge to an award, not a ceiling on what a person earns. NIH ties it to the federal Executive Level II salary, and Congress resets that figure through the annual appropriations process. When an investigator's institutional base salary sits at or below the cap, you charge the grant their actual rate multiplied by their committed effort. When the base salary is above the cap, the chargeable rate is frozen at the cap.
The math is straightforward once you fix the rate. Allowable salary equals the lesser of base salary or cap, multiplied by effort. The gap between what the grant would have paid at the full base rate and what it actually pays at the capped rate is the over-the-cap amount, and that difference has to be funded from non-federal sources such as institutional or discretionary accounts.
NIH salary cap by year
The cap changes when the Executive Level II salary is adjusted, usually in January. Each new rate applies from its effective date; earlier budget periods keep the cap that was in force at the time.
| Year | Salary cap | Effective |
|---|---|---|
| 2026 | $228,000 | January 1, 2026 |
| 2025 | $225,700 | January 1, 2025 |
| 2024 | $221,900 | January 1, 2024 |
| 2023 | $212,100 | January 1, 2023 |
| 2022 | $203,700 | January 2, 2022 |
| 2021 | $199,300 | January 3, 2021 |
| 2020 | $197,300 | January 5, 2020 |
| 2019 | $192,300 | January 6, 2019 |
| 2018 | $189,600 | January 7, 2018 |
| 2017 | $187,000 | January 8, 2017 |
| 2016 | $185,100 | January 10, 2016 |
Source: NIH Salary Cap Summary. Between October 1 and the January change, the prior year's cap stays in effect.
A worked example
Suppose an investigator has an institutional base salary of $300,000 and commits 25 percent effort to an NIH project, with the 2026 cap of $228,000. At the full base rate, 25 percent effort would be $75,000. The cap limits the chargeable rate to $228,000, so the most you can bill the grant is 25 percent of that, or $57,000. The remaining $18,000 is the over-the-cap amount, and the institution covers it from non-federal funds. Fringe benefits follow the capped salary, so they are calculated on the $57,000, not the $75,000.
Common mistakes to avoid
- Forgetting to recalculate when the cap changes in January, which can leave budgets and payroll out of step for months.
- Applying the cap to the wrong base. Use the institutional base salary, not a grant-specific or supplemented figure.
- Treating the cap as a limit on total pay rather than on the chargeable rate, and under-committing effort as a result.
- Charging fringe benefits on the uncapped salary instead of the capped amount.
- Reporting over-the-cap salary as cost sharing. It is an unallowable cost, not a commitment to track.
Frequently asked questions
What is the NIH salary cap for 2026?
$228,000, equal to the federal Executive Level II salary, effective January 1, 2026 (NIH notices NOT-OD-26-034 and NOT-OD-26-038). From October 1 through December 31, 2025, the cap was $225,700.
What was the NIH salary cap in 2025?
$225,700, effective January 1, 2025. Before that it was $221,900, effective January 1, 2024.
Does the salary cap limit what a researcher can be paid?
No. The cap limits only the rate of salary you can charge to the federal award. The institution can pay an investigator whatever their contract specifies; it just cannot bill the portion above the cap to the grant.
Does the cap apply to every sponsor?
It is primarily an NIH rule, and it also applies to other agencies in the Public Health Service such as AHRQ, SAMHSA, and CDC. NSF, most foundations, and many other sponsors do not impose a salary cap, so check each sponsor's policy before you budget.
What happens when the cap changes mid-project?
The cap is reset by appropriations, usually in January. When it rises, you may be able to recover more salary in the new budget period, but you cannot retroactively charge the grant for earlier periods. Recalculate every active award when the rate moves.
Is the over-the-cap amount considered cost sharing?
No. Salary above the cap is an unallowable cost on the federal award, paid from non-federal funds. It is not voluntary committed cost sharing and should not be reported as cost sharing.
Track salary cap impact automatically
GrantsManager flags over-the-cap salary across your awards and keeps effort and payroll reconciled.
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