NIH Salary Limit
The National Institutes of Health (NIH) imposes a salary limitation for NIH awards that is tied to the annual NIH Executive Level II Pay Scale. “Salary" and "institutional base salary" have the same meaning and are exclusive of fringe benefits and Facilities and Administrative (F&A) costs. The “institutional base salary” is the annual compensation that Princeton pays for an individual's appointment and cannot be budgeted or applied at a rate higher than the NIH Executive Level II Pay Scale.
Example: Summer Salary Calculation and Payment
NIH Salary Limit = $179,700
PI applies 1.0 summer month effort on an NIH award
Allowable salary on NIH award = $179,700/12 * 1.0 = $14,975
PI’s 9-month academic year salary = $167,000
PI’s monthly institutional base salary = $167,000/9 = $18,555.56
Result: Difference of $18,555.56 and $14,975 must be moved to non-sponsored chartstring.