2025 Newly Increased Health and Welfare Rates on SCA Government Contracts
The Department of Labor’s (DOL) Wage and Hour Division (WHD) has again issued new Service Contract Act (SCA) health and welfare (H&W) rates. Effective July 7, 2025, WHD increased the prevailing H&W fringe benefits from a rate of $5.36 per hour to $5.55 per hour . Where a contractor is obligated to comply with Executive Order (EO) 13706 sick leave obligations, the rates increased from $4.93 per hour to $5.09 per hour. Updated rates of $2.42 per hour (without the EO) and $1.96 (with the EO) also apply to employees in Hawaii covered by the Hawaii Prepaid Health Act. For government contractors with an existing SCA contract, obtaining a new SCA contract, renewing options, or modifying existing contracts with a new wage determination, PilieroMazza covers what you need to know below . Should I increase H&W rates on all of my SCA contracts now? No. Although the new wage determinations have been issued by DOL, the only H&W rate that is applicable to your cont...