Guidance on Salary Limitation for Grants

Guidance on Salary Limitation for Grants and Cooperative Agreements FY 2020

The Office of Management and Budget (OMB) has issued guidance on salary limitations for grants and cooperative agreements for Fiscal Year (FY) 2020. This guidance is important for organizations that receive federal funding and need to comply with salary limitation requirements.

Background

Salary limitation requirements were first implemented in 1990 and have been periodically updated by the OMB. These requirements were created to standardize the maximum amount of salary that can be charged to a grant or cooperative agreement funded by a federal agency.

The current salary limitation is based on the Executive Level II salary level of the federal pay scale, which is currently set at $197,300 per year. The limitation applies to the salary of senior personnel who work on the grant or cooperative agreement, including principal investigators, project directors, and any other individuals who are directly responsible for the scientific, technical, or administrative conduct of the project.

Guidance for FY 2020

For FY 2020, the OMB has announced that the salary limitation will remain at $197,300 per year. This means that organizations that receive federal funding should not charge any individual working on the grant or cooperative agreement more than this amount per year.

It is important to note that this salary limitation applies to the base salary of senior personnel. Additional compensation, such as bonuses or fringe benefits, may be allowed as long as it is not charged to the grant or cooperative agreement.

Exceptions to the Salary Limitation

There are a few exceptions to the salary limitation requirement. For example, if an individual`s salary is paid with non-federal funds, they may be exempt from the limitation. Additionally, if an individual`s salary is funded by a federal agency other than the one providing the grant or cooperative agreement, they may be exempt from the limitation.

Conclusion

Organizations that receive federal funding should be aware of the salary limitation requirements for grants and cooperative agreements for FY 2020. Compliance with these requirements is essential to ensure that federal funds are being used appropriately and efficiently. By adhering to the salary limitation and any exceptions, organizations can maintain a positive relationship with federal agencies and continue to receive funding for their important work.