Every year, 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 Services Contract Act (SCA). The sharp rise of inflation has caused the 2022 SCA fringe rate to seem more important than ever. We are happy to report that the wait is over — the 2022 SCA fringe benefit rate has been released!
The 2022 SCA Fringe Benefit Rate
On June 23, 2022, the Department of Labor’s Wage and Hour Division issued All Agency Memorandum No. 239 announcing the prevailing health and welfare fringe benefit rate. The 2022 SCA fringe benefit rate has increased to $4.80 per hour from the 2021 rate of $4.60 per hour. The updated fringe benefit rate will be posted on SAM.gov and the DOL’s Wage and Hour Division website.
Additional SCA Health & Welfare Fringe Benefit Rate Information
All service contracts that contain paid sick leave (that fall under Executive Order 13706), must continue to apply the SCA health and welfare benefit rate of $4.41 per hour. As background, EO 13706, established paid sick leave for federal contractors that requires certain government contractors provide their employees with up to seven days of paid sick leave annually. Paid leave absences may apply to family care, as well as absences that stem from instances of domestic violence, stalking, and other intimate partner violence. EO 13706 applies to new contracts with the federal government that were awarded on or after January 1, 2017.
Benefits are what we do best.
For 40+ years, Boon has provided compliant and competitive fringe benefit solutions for government contractors. We support the government contracting industry with our customized benefit offerings, consultative approach to solutions, and expertise in a constantly evolving space.
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