Salary and Fringe Benefits  

The guidelines will list the personnel the sponsor supports. Some programs will not allow salaries for investigators; others restrict salary recovery to summer only. Clerical support is considered an indirect cost in most cases
(see OMB circular A-21).

Salary Increments
Until further notice, principal investigators should use the following schedules when preparing budgets for proposals for submission to both public and private agencies.

Salary Increments for Multiple Year Budgets: Based upon federal government figures on inflation rates, we recommend salary increments of 3.5 to 5.0 percent for all personnel. (NIH limits incremental increases in all line items to 3.0%)

NIH Salary Cap: $191,300 (effective January 1, 2008)

NSF Daily Consultant Rate: The National Science Foundation no longer has a required daily rate for consultants. See information on Subcontracts and Consultants for more on consultants.

Fringe Benefit Rates
Estimate fringe benefits using a flat rate of 20 percent of all salaries requested from the sponsor, with the exception of graduate student and undergraduate student salaries (see more below). Apply this 20 percent to all years of a multiple year proposal.

Summer Fringe Benefits
For faculty summer salaries, use 7.65 percent to calculate fringe benefits unless postdocs or other non-faculty personnel are involved. Then the 20 percent figure can be used.

Graduate Student Health Subsidy: Graduate Research Assistants receive fringe benefits in the form of a subsidy toward health care insurance. The subsidy will be paid as a credit in the Office of Student Accounts for eligible students who purchase the University-sponsored student health insurance policy. Currently, the policy is underwritten by Mega Life and Health Insurance Company.
The subsidy for 2008-2009 is $750.

Is 20 percent Enough? How to Calculate Fringe Benefits with Actual Figures
Use the following figures from the University's Payroll Department:
   (Federal Insurance Contributions Act [FICA] +
    Health Insurance)
FICA is 7.65% [6.2% Social Security + 1.45% Medicare]
    Calculate 7.65% of salary requested up to $87,900 ...
    1.45% of salary in excess of $87,900

    – Graduate Student Health Subsidy (if applicable)

    – Undergraduates do not receive fringe benefits if they
       are taking at least a three-credit course while working
       on a project. If they are not taking a course for credit,
       then Social Security is applied at 7.65% of salary.

Employee
monthly

Notre Dame
monthly

Total
monthly

Employee
annually

Notre Dame
annually

Total
annually

Meritain Select HMO Plan – Individual

$30

$376

$414

$456

$4512

$4968

Meritain Select HMO
– Individual + one

$132

$696

$828

$1584

$8352

$9936

Meritain Select HMO Plan – Family

$146

$1096

$1242

$1752

$13,152

$14,904

Meritain CHA HMO  Plan
– Individual

$50

$393

$443

$600

$4716

$5316

Meritain CHA HMO
– Individual + one

$171

$714

$885

$2052

$8568

$10,620

Meritain CHA HMO Plan
– Family

$188

$1140

$1328

$2256

$13,680

$15,936

Meritain PPO – Individual

$64

$419

$483

$768

$5028

$5796

Meritain PPO – Individual
+ one

$205

$762

$967

$2460

$9144

$11,604

Meritain PPO – Family

$227

$1223

$1450

$2724

$14,676

$17,400

No Coverage

$33 refund

$33 refund

$0

$396

$396 refund

$0

Not Eligible
(<30 hours per week)

$0

$0

$0

$0

$0

$0