Service Contract Act Minimum Health & Welfare Amount Increased to $4.27 an Hour

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Effective June 30, 2015, the prevailing health and welfare (HW) fringe rate under the McNamara-O’Hara Service Contract Act (SCA) is $4.27 an hour. The new rate is a $.25 increase from the previous rate of $4.02 an hour. Current service contracts will be impacted only once the new wage determination (WD) containing the updated HW rate has been incorporated into the contract via official modification from the Contracting Officer (CO). Price adjustments may not be granted to service contractors that increase employee wages or health and welfare rates before the new WD is incorporated into the contract (See …read more

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