NIH Salary Cap Changes Effective January 1, 2024

On January 29, 2024, the National Institutes of Health (NIH) published updated information regarding the Fiscal Year 2024 salary limitation under NOT-OD-24-057 (opens in new window). NIH is currently operating under a Continuing Resolution. The “Further Continuing Appropriations and Other Extensions Act, 2024” (Public Law 118-22 (opens in new window)) applies the terms and conditions of the Consolidated Appropriations Act, 2023. These terms and conditions of the Appropriations Act restrict the amount of direct salary to Executive Level II of the Federal Executive pay scale. The Office of Personnel Management recently released new salary levels for the Executive Pay Scale. Effective January 1, 2024, the salary limitation for Executive Level II is $221,900.


The Office of Sponsored Research (OSR) implemented use of the new salary cap on January 18, 2024, for all new, renewal, supplement, or resubmission NIH proposals. To do so, eProposal was updated to include the new salary cap option: $221,900- FY2024 NIH Salary Cap 01/01/24-Forward.

As a reminder, please be sure to indicate in the budget justifications when personnel are over the salary cap.

Existing Awards


The new salary cap may be used for existing awards if adequate funds are available, as described in the NIH Notices. If the increased salary cap is adopted on existing awards, you will be allowed to rebudget funds to accommodate the new cap; however, no additional funding will be provided by the sponsor.

Payroll Processing

UCSF will use an effective date of January 1, 2024 for payroll processing using the new salary cap. The HHS cap type in the UCPath system will be updated shortly to $221,900 with an effective date of January 1, 2024.

Adjusting Payroll

To avoid salary cost transfers as much as possible, please complete funding entry changes in UCPath as soon as possible prior to the February funding entry deadline. January payroll funding entry deadlines have all past. To retroactively adjust January payroll to reflect the new salary cap, please submit a Salary Cost Transfer using standard practices.

To update payroll funding prospectively, create a new effective-dated funding record using the Salary Cap/MCOP Funding Worksheet and apply the updated “Cap Rate” on appropriate earnings distribution lines. While use of the Faculty Salary Calculator (FSC) worksheet is never required for funding entry, in keeping with past practice the FSC worksheet is being updated to include the new salary cap option, $221,900-FY2024 NIH Cap 01/01/24.

Training materials and additional resources are posted on the Information for Funding Entry Initiators and Approvers (opens in new window) and Information for Salary Cost Transfer Initiators and Approvers (opens in new window) pages on the UCPath website.