Several other federal agencies, including the Centers for Disease Control (CDC) and the Health Resources and Services Administration (HRSA) sometimes incorporate this limit on salary into their awards as well, even though they do not have legislative authority to do so.

Some non-federal agencies, including the American Cancer Society (ACS), and the State of California Department of Health Services, California Cancer Research Program (CRP), have also imposed this cap on some programs they sponsor.

Occasionally, other agencies limit the rate at which salaries can be paid. For example, the Susan G. Komen Breast Cancer Foundation continues to cap salaries at a full-time rate of $125,900 per year.

Salary charged to a contract, cooperative agreement or grant from these agencies cannot be paid at a monthly rate that exceeds 1/12th of the maximum annual rate of pay then in effect. The capped rate in effect as of January 1, 2008, is $191,300. This means that salary expenses charged on or after January 1, 2008, cannot be paid at a monthly rate that exceeds $15,941.67.

The table below shows annual rates, when they are applicable, and how the annual rates convert into monthly maximum rates of pay:

Pay received by academic year appointees reflects the fact that the nine-month salary is paid out in twelve equal portions. Thus, for FY 2007 awards subject to the maximum rate of pay for full time effort of $191,300 for work performed during the academic year will reflect a maximum monthly full-time rate of $11,956.25 ($15,941.67 multiplied by 9 and divided by 12). The table below shows the same calculation for each of the applicable rates:

Ordinarily, the salary chargeable to a sponsored project is the employee's rate of pay multiplied by the employee's level of effort on the project. Salary charges to a contract or grant subject to the cap cannot be paid at a monthly rate that exceeds 1/12th of the maximum capped annual rate of pay in effect, multiplied by the number of months of full-time effort being devoted to the project.

Higher levels of effort mean proportionately more salary can be charged to the grant, cooperative agreement or contract. Under no circumstances, whether or not an employee is working on contracts or grants that are subject to the NIH cap, can the percent of full-time salary charged to the contract or grant exceed the level of full-time effort devoted to the project.

For example, if the University pays Dr. Jones an annual salary of $200,000 for a full-time fiscal year appointment, then her monthly rate of pay for full time effort (1/12th of the annual salary rate) is $16,666.67. Dr. Jones' salary exceeds the capped rate, which in calendar year 2008 is limited to a maximum of $191,300 for full-time effort. This equates to $15,941.67 per month (1/12th of the maximum allowable annual rate of pay for full-time effort under the NIH cap).

• If Dr. Jones devoted 1.2 calendar months to a grant from NIH, SAMHSA or AHRQ made with federal FY 2008 monies, a maximum of $19,097.60 could be charged to the grant.
• If Dr. Jones were able to devote 6 calendar months to the project, then a maximum of $95,650 could be charged to the grant.
• If Dr. Jones devoted 9 calendar months to the project each month, at most $143,475 could be charged to the grant.
• Assuming that Dr. Jones has no teaching or other responsibilities and is able to devote 12 calendar months effort to the project, a maximum of $191,300 could be charged to the grant.