How to Calculate Fringe Benefits for Construction Labor

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Construction companies fulfilling government contracts that cost more than $2,000 must pay laborers the prevailing wage and fringe benefits as workers performing the same job at other government job sites in the surrounding area. The Davis Bacon and Related Acts contain the information regarding the prevailing wage laws that exist to prevent wage discrimination. The Secretary of Labor determines the prevailing wage and benefits and includes the information in all contracts where applicable. The Department of Labor's Wage and Hour Division oversees compliance with DBRA laws.

  • Open the Wage Determination OnLine website (wdol.gov). This website provides the prevailing wage and fringe benefits for all official contracts.

  • Click on "Selecting SCA WDs" to open the search site for the Service Contract Act and Davis-Bacon act prevailing wage and fringe benefits for similar jobs.

  • Select your state and county from the drop down menu. Click "Continue" and answer any question by clicking "Yes" or "No" to open the list for similar contract wages and benefits.

  • Select the type of contract from the list and click "Yes."

  • Look at the wage determination and scroll down to the benefits section. Here you find the hourly, weekly and monthly benefit rates you must pay.

  • Add the listed amount to your employee's regular wage. For example, if a contractor in Autauga County, Ala., receives a contract for planting trees, the minimum amount he can pay employees is $10.40 per hour regular wages. The stipulated amount for health and welfare benefits is $3.59, so the contractor must pay $13.99 per hour to his employees.

Tips & Warnings

  • If the SCA WDs website does not provide the prevailing wage and benefits for the contract you are looking for, you can send an e98 request to the WDOL.
  • Calculate overtime rates on the prevailing wage alone. After calculating the overtime rate, then add the fringe benefit rate to determine the employee's pay.
  • Calculations for union employees may require an e98 request to determine the prevailing wage and fringe benefit for the job.

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