Research Administration Office

University of California

Memo Operating Requirement

No. 90-6

Supplement No. 2

February 14, 1992

SUBJECT: Change in NIH/ADAMHA Salary Cap for FY 1992

As indicated in the enclosed NIH Guide notice, the maximum rate of compensation that can be paid under an NIH or ADAMHA award has been increased from $120,000 to $125,000 per year, effective with grants or contracts made with FY 1992 funds. This limit continues to be for personal compensation exclusive of fringe benefits and indirect costs. The limit does apply to subawards/subcontracts for substantive work but does not apply to consultants.

The annual rate of $125,000 works out to $10,416.67 per month, $2,403.85 per week, or $480.77 per day. Since this is a cap on the rate of pay, an appointee at X% of full time would be limited to no more than X% of the applicable rate. Thus, for example, a PI working 20% on an NIH grant could not charge more than $2,083.33 per month to that grant.

The NIH and ADAMHA continue to request that institutions show full salaries in proposals and applications, and the agencies will make any necessary downward adjustments. Please refer to the last two paragraphs of the enclosed notice for additional restrictions on carry-over funds, rebudgeting "excess" salary, and changes in level of PI effort. Refer to Supplement No. 1 of this Contract and Grant Memo for additional information on salary supplementation.

Refer: Bill Sellers (510) 987-9847

Subject Index: 07

Organization Index: F-375

David F. Mears

Director

Research Administration Office

Enclosure