University of California Office of the President
Senior Vice PresidentóBusiness and Finance

Research Administration Office

Operating Guidance

No. 90-6 Suppl.5

January 22, 2001



Subject: NIH/SAMHSA Salary Cap

The Department of Health and Human Services (HHS) Appropriations Act for FY 2001 contains a restriction on the amount of direct salary of an individual paid from NIH or SAMHSA funds, thus continuing the legislated limitation for the twelfth consecutive year. The salary limitation is now tied to Executive Level I. It was tied to Executive Level II in FY 2000 and Executive Level III in FY 1999. 

NIH issued guidance in Notice OD-01-013 dated January 11, 1001 and Notice OD-01-014 dated January 18, 2001. Capped rate amounts are again tied to federal fiscal year appropriations effective October 1, and calendar year cost of living increases effective January 1. 

The University's guidance for compliance with the cap was issued in Contract and Grant Operating Guidance Memo No. 90-6 Supplement 4, dated February 17, 2000 and is available electronically at The purpose of this memo is to incorporate the new higher capped salary levels into the operating guidance. The following table supplements Appendix 1 of Operating Guidance Memo No. 90-6 Supplement 4.

Federal Fiscal Year 2001 NIH/SAMHSA Salary Cap Rates for Academic Appointments are: 


Date of Salary Earnings At 100% FTE

Annual Maximum Charge
At 100% FTE

Monthly Maximum Charge
At 10% FTE

Monthly Maximum Charge
Fiscal Year Employees 01/01/01- $161,200 $13,433.33 $1,343.33
10/1/00-12/31/00 $157,000 $13,083.33 $1,308.33
Academic Year Employees* 01/01/01- $120,900 $10,075.00 $1,007.50
10/1/00-12/31/00 $117,750 $ 9,812.50 $ 981.25
23 service days**

Monthly Maximum Charge
15 service days***

Monthly Maximum Charge
Summer Salary
3/3 Appointment
01/01/01- $ 40,300.00 $ 16,261.00 $ 10,606.00

* Academic Year Salary Paid over 12 months

** Summer maximum of $40,300 times 1/3 times time Factor 1.2105

*** Summer maximum of $40,300 times 1/3 times time Factor 0.7895

Refer: Meredith O'Connor
(510) 987-9847

Subject Index: 07
Organization Index: F-375

David F. Mears
Research Administration Office 


CC: Academic Personnel Directors
Accounting Officers
Control Directors
Extramural Fund Managers
Federal Audit Coordinators