The Department of Labor has announced the following fringe benefit (Health & Welfare) rate increases for SCA-covered contracts:
- $5.55 per hour (increase from $5.36)
- $5.09 per hour for EO 13706 contracts (increase from $4.93)
- $2.42 per hour for Hawaii Prepaid Healthcare Act (HPHCA) employees
- $1.96 per hour for Hawaii Prepaid Healthcare Act (HPHCA) employees on EO 13706 contracts
Effective July 7, 2025, 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.
The Boon Group’s SCA experts are here to assist with any questions you may have regarding the new rates or average cost contracts. Please contact our team of SCA subject matter specialists with any questions.
