U.S. DOL Announces 2021 SCA Fringe Rate
The Department of Labor’s Wage and Hour Division Made an Important Announcement
Per 29 C.F.R. subsection 4.52, the prevailing wage health and welfare fringe benefit rates will be increased under the McNamara-O’Hara Service Contract Act effective July 16th, 2021.
The new health and welfare fringe benefit rate will be $4.60 per hour. This will impact both the employee-by-employee and average cost benefit rates.
Bids & Contracts Subjected to Executive Order 13706:
For contracts subject to EO 13706 (Paid Sick Leave for Federal Contractors), the new health and welfare fringe benefit rate will be $4.23 per hour.
The SCA health and welfare fringe benefit rate will remain at $1.94 per hour.
All invitations for bids opened and service contracts awarded on or after July 16th, 2021, must include an updated SCA WD that complies with the regulatory health and welfare fringe benefit determination methodology. Please check with your local state regulators for any fringe rate changes that may be taking place at the state or municipal levels as they are often reflective of the federal fringe rate.