The 2024 Health & Welfare Fringe Benefit Rate
Annually, government contractors eagerly await the U.S. Department of Labor’s announcement of the new fringe benefit obligation for health and welfare benefits under the Service Contract Act (SCA). With all eyes on the economy and the ripple effects of inflation, the 2024 SCA fringe rate is all the more important for employers and employees alike. We are happy to report that the wait is over – the 2024 SCA fringe benefit rate has been released!
The 2024 SCA Fringe Benefit Rate
Effective July 2, 2024, the Department of Labor announced the 2024 rate for Service Contract Act prevailing health and welfare benefits through All Agency Memorandum 246.
Please find the following increased fringe benefit updates for SCA-covered contracts, as announced in the Memorandum:
- $5.36 per hour (increased from $4.98)
- $4.93 per hour for EO 13706 (increased from $4.57)
- $2.36 per hour for Hawaii Prepaid Healthcare Act (HPHCA) employees
- $1.93 per hour for Hawaii Prepaid Healthcare Act (HPHCA) employees performing EO 13706 contracts.
The 2024 fringe benefit rate and all All Agency Memorandum 246 will be posted on SAM.gov and on the Department of Labor’s Wage and Hour Division website.
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