DOL Announces Increased Health & Welfare Rates for SCA-Covered Contracts

Joe
July 22, 2021
2 min read

The Department of Labor has announced the following fringe benefit (Health & Welfare) rate increases for SCA-covered contracts:  

  • $4.60 per hour
  • $4.23 per hour for EO 13706 contracts
  • $1.94 per hour for Hawaii Prepaid Healthcare Act (HPHCA) employees (no change)
  • $1.63 per hour for Hawaii Prepaid Healthcare Act (HPHCA) employees on EO 13706 contracts (no change)

 Effective July 16, 2021, the Wage and Hour Division (WHD) will post the increased Health & Welfare (H&W) rates on Wage Determinations. Contractors are required to provide the H&W rate from the Wage Determination that is applicable on the anniversary date of a multiple-year contract or at the beginning of the contract option period. Additionally, contractors should only provide the new H&W rate after their Contracting Officer has formally notified the contractor of the rate increase.   Please refer to All Agency Memorandum 237 for additional information.

GSA National’s SCA experts are here to assist with any questions you may have regarding the new rate and its application to your SCA-covered employees. Please contact our team of SCA subject matter specialists with any questions.

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