Service Contract Act Fringe Rate Increases 2024
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 Agency Memorandum 246 will be posted on SAM.gov and on the Department of Labor’s Wage and Hour Division website.
Keep in mind that the new fringe rate is in effect for a particular contract only after the contracting officer incorporates the new fringe rate into that specific contract. The contracting officer should incorporate the new fringe rate that is applicable on the anniversary date of a multiple-year contract or at the beginning of the next contract option period after July 2, 2024.
Understanding fringe rates and how they apply to federal government contracts is important. AssuredPartners GovCon specializes in providing solutions that give federal government contractors a competitive edge. For more information and guidance, contact our team!
Featured News & Insights
The Department of Labor’s Wage and Hour Division recently announced approved revisions to the Davis-Bacon Certified Payroll Form. As of January 6, 2025, the Office of Management and Budget finalized...
The McNamara-O'Hara Service Contract Act (SCA) of 1965 requires contractors and subcontractors performing services on prime federal contracts to pay service employees in various classes (typically...
Providing Service Contract Act (SCA) employees with benefits can reduce costs for contractors on bids and increase their competitiveness against peers, all while offering employees valued benefits....