NIH Graduate Student Compensation

Graduate Employee (GE) Appointments 

Summary

Recently questions have come up about the use of NIH funding for the support of graduate employees (GEs) as compared to postdoctoral scholars. This is the guidance on the interpretation of NIH requirements related to compensation levels for graduate students working on NIH research grants.

The NIH will award funds for the cost of a graduate student working on a research project (i.e., for a GE up to the "zero level" NRSA Postdoctoral stipend in effect at the time that the research project is awarded. As of April 2024, the "zero level" NRSA award is $61,008 per year, and the NIH will not award funding above that level to compensate a graduate student. NIH Reference.

The NIH, however, allows PIs to re-budget project funds to charge more than this amount for the actual cost of a graduate student. The NIH allows its project funds to be used to compensate a graduate student up to the "amount paid to a first-year postdoctoral scientist at the same institution performing comparable work."

 

Detail

Compensation for both graduate students and postdocs is defined to include salaries or wages, fringe benefits and tuition remission. Particularly for graduate students who have not reached TGR status, the combination of wages, benefits and tuition may move the GE's compensation above the level that the NIH defines as allowable, i.e., above the cost for a first-year postdoc doing comparable work. To maximize the use of available funds, PIs are expected to use NIH project funds to support grad students up to the maximum allowed by the agency. In no case, however, may a graduate student working as an GE on an NIH project be compensated from that project's funds at a level exceeding what an entry-level postdoc in the same lab or group would cost (comparable work).

 

EXAMPLE (using 2023 – 2024 UO compensation levels)

  • Maximum amount awarded by the NIH for a grad student's support - $61,008 per year (stipend level set annually by the NIH for a "zero-year" NRSA Postdoctoral Fellow).
  • Minimum compensation for a first-year postdoc at the University of Oregon - $66,625 per year ($44,064 per year, plus 51.2% OPE (Other Payroll Expenses)
  • Minimum compensation for a GE 1 at the University of Oregon - $49,421 per year ($46,828 per year, plus 3.4% OPE (Other Payroll Expenses), plus $1,770 health insurance per AY term, plus $938 fees per AY term, plus $5,857 tuition per AY term).

     
  • Breakdown:
    • $22,946: 3 AY Terms GE 1 at .49
    • $780.16 OPE
    • $2,814 Fees
    • $5,310 Insurance
    • $17,571 Tuition


Note that some units or departments have established a compensation level for first-year postdocs that exceeds this University minimum.

Hence, while the NIH will award a maximum of $61,008 per year for a graduate student, they will allow the re-budgeting of their project funds so that a higher level may be charged for graduate student support. Normally, the NIH will allow a UO PI to charge up to the $66,625 amount per year (including salary, benefits and tuition) for a graduate employee GE working on an NIH project.  As shown in the example above, this may require re-budgeting of project funds (for non-modular grants) as allowed by the NIH.

Re-Budgeting Policies:

  • The amount paid to a GE is “reasonable.” Institutions may continue to re-budget funds to charge more than the awarded amount provided OMB (Uniform Guidance, 2 CFR 200) cost principles requiring reasonable compensation are observed. In general, graduate student compensation will not be considered reasonable if in excess of the amount paid to a first-year postdoctoral scientist at the same institution performing comparable work;

and

  • There are sufficient funds in the NIH Award to accommodate the payment to the GE(s) while at the same time ensuring that the terms and objectives of the award will be completed without the need for any additional funding from the NIH.

If you have any questions, contact your Pre-Award Sponsored Projects Administrators at preawardteam@uoregon.edu.