Fringe Benefit Rate Requirement for Service Contract Act Remains Unchanged for 2020

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  • July 1, 2020

Effective June 29, 2020, the Health and Welfare Fringe Benefit Rates will remain $4.54 for those affected Service Contract Act wage determinations. The low-level (employee-by-employee) benefit will remain $4.54 per hour or $181.60 per week or $786.93 per month. Also, Wage and Hour Division (WHD) will continue to issue SCA wage determinations based on the average cost method of compliance. The high-level (average cost) benefit rate will remain $4.54 per hour. WHD will issue the average cost fringe benefit wage determinations only for those contracts where the formerly grandfathered high-level benefit rate applied.

For contracts performed in the State of Hawaii; contracts subject to Executive Order 13706 on sick leave, or if there are any questions, please refer to All Agency Memorandum Number 232 (PDFHTML), or contact WHD via phone or email listed below.

Do you have questions regarding the updated rate and how it may impact your SCA population? Contact our SCA subject matter specialists with your questions, any time!

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