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SCA H&W Rate Increase Announced

Reminder: To all who are impacted by SCA (Service Contract Act). 

For those who don't know or may have forgot in the hectic pace of day to day pressures:  Please read your contract and SCA guidelines.  There are specific tasks you must follow and there are timelines and deadlines you may have to meet or it may cost you dearly

The U.S. Department of Labor has released its annual memorandum noting a rate increase for Service Contract Act (SCA) Health and Welfare Fringe Benefits. The new rate is $4.60 per hour  and is required in all government contract bids, or other service contracts awarded on or after July 16, 2021. For existing service contracts, the new rate will go into effect on the anniversary date following July 16, 2021.

SCA benefit change notices are not always sent directly to contractors or subcontractors, so we wanted to make sure members that may be affected were aware of this update/change.

Disclaimer: Information provided is based on our experience, training, and judgment in interpreting the practical application and intent of official guidance and regulations.  It does not represent the official position of any government agency or their representative.