Budget Development for Proposals
Calculating Salaries

Summer Salary | General Guidelines | Extra Compensation

Internal Grants for Summer Salary

Academic and Professional Staff salaries should be calculated in percentages. Clericals and students should be hourly.

If you are taking course release time, calculate at 25% per course.

If you are not taking course release time the maximum amount you can use is 25%.

Fringe benefits must be included as a line item in any budget including salary. Find the current fringe rates at

Internal Grants for Summer:

If you will be requesting the full grant amount for summer salary and the calculation (AY salary x .025 x 8 weeks x 27% fringe) works out to more than $8500 for a Faculty Research Grant or $3000 for a Curriculum Development grant, use the following numbers:

FRG Salary $6,693 Fringes $1,807 for a total request of $8,500

CDG Salary $2,363; Fringes $637; for a total request of $3,000

Excerpts from the IU Research Policy Manual:

Some General Guidelines:

  • Academic year or fiscal year salary for faculty may be included in a grant only on a released time basis with a like reduction in General Fund support for the period.
  • Summer support may be included following current summer pay guidelines
  • Occasional short-term consulting funds may be included for IU faculty members from other departments or from separate or remote operations of the same unit
  • Funding for current research appointees named in the application must follow University salary policies, which specify, among other things, that rate increases are permitted only on anniversary dates of appointment, and that justification must be provided for extraordinary increases

Extra Compensation

In preparing external funding proposals, keep the University's policy on extra compensation in mind. Section 6 of the policy is quoted from the Academic Handbook, p.47:

"Faculty members devoting part time to projects supported by contracts and grants will receive General Fund salary support only for that portion of their time devoted to regular University programs of instruction and research. In no case will the total salary components from General Fund and contract or grant sources exceed 100 percent of the faculty member's normal, budgeted salary rate."

Questions regarding compensation and extra compensation for work on IU-administered grants and contracts should be directed to Contract and Grant Administration at (812) 855-5326 or the Office of Academic Affairs and Dean of the Faculties at (812) 855-2809.

Summer Salary

Faculty members on academic-year (10 month) appointments may be given summer appointments on grants or contracts at a weekly rate (AYS x .025) not to exceed 2-1/2 percent of the previous academic-year salary (AYS). Ordinarily, summer appointments are for 9 weeks (22-1/2 percent AYS), which complies with the National Science Foundation regulations, however, it also limits summer pay to 2/9 of AYS. Appointments may extend to a maximum of 11 weeks (27-1/2 percent AYS) if permitted by the funding agency.

While appointments to a maximum of 13 weeks full-time (32-1/2 percent AYS) may be requested, appointments in excess of 11 weeks, whether wholly or partly supported by grant or contract funds, are strongly discouraged. Exceptions to the 27-1/2 percent limitation will be made only in cases where a longer appointment is needed by a school or department to meet its research or programmatic needs and is allowed by the funding agency. Any request for a summer appointment in excess of 11 weeks must be accompanied by an explanation of the institutional benefit and must be approved, in advance, by the Office of Academic Affairs and Dean of the Faculties.

Combinations of teaching, research, administrative, and workshop appointments may not exceed 100 percent FTE during any time interval. Any exception to this limitation must be approved in advance by the Office of Academic Affairs and Dean of the Faculties.

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Last updated: September 22, 2016
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