Recommended Escalation Rates for Use in Sponsored Project Proposal Budgets

Guideline Date: December 2022
Revision: 0
Last Review: December 2022

Principal investigators may plan for rising costs by building reasonable annual increases into proposal budgets. Not all sponsors permit cost escalations, but where they are permitted, Sponsored Projects recommends the following rates by budget category.

Salary and wages (does not apply to fringe rates)
Effective dates Budget category Increase not to exceed
FY 24 Faculty/Classified 12.2% (Escalation to be included until proposed FY24 COLA is approved and applied to salary.)
FY 24 Others 3%
FY 25 Faculty/Classified 4%
FY 25 Others 3%
FY 26+ Faculty/Classified 3%
FY 26+ Others 3%
Graduate research assistants
Budget category Increase not to exceed
Stipend (does not apply to fringe rates) 3%
Tuition 5%
Other direct costs
Budget category Increase not to exceed
Other direct costs 3%

Considerations Governing Budget Escalations

  • The sponsor’s requirements and limitations may impact budget escalations.
  • Proposed budget escalations cannot justify cost increases that do not occur as projected, i.e., costs must actually escalate within the percentage and projected budget period in order to allow the budget increase.

Check with your College Grant Coordinator or Pre-Award Research Administrator for guidance on the allowability and use of escalations.