Federal and nonfederal sponsors may limit the salary amounts paid on sponsored awards. The Federal salary cap is currently at the executive Level II of the Executive Pay scale.
New York University (NYU) complies with sponsor-imposed limitation of salaries charged to sponsored programs. When there is a salary cap for a sponsored project, the Principal Investigator (PI) will monitor that any salary paid above the cap will not be charged to the sponsor.
Grant proposals should be submitted with the PI's actual Institutional Base Salary, and adjusted for anticipated increases. When the grant is awarded, the agency adjusts the approved budget to reflect the salary cap.
The salary cap is used to compute the maximum allowed rate for an individual pay period. Therefore, the salary charged to the project under the salary cap will be the lesser of the following:
A) Maximum under the Cap =
(Salary Cap ÷ 12) x (percent of Effort) x (number of months devoted to project)
B) Salary based on Monthly IBS =
(IBS ÷ number of appointment months) x (percent of Effort) x (number of months devoted to project)
Note: Summer salary will be calculated the same as academic year salary.
Principal Investigator (PI):
Department Administrators (DA's):
Sponsored Programs Administration (SPA)
Office of Sponsored Programs (OSP)