Department of Labor Memorandum Number 250 .pdf

This is an All Agency Memorandum from the U.S. Department of Labor's Wage and Hour Division addressing the 2025 Service Contract Act (SCA) Health and Welfare Fringe Benefit updates. The memorandum increases the health and welfare fringe benefits rate to $5.55 per hour, as prescribed by the Bureau of Labor Statistics Employment Cost Index. For contracts subject to Executive Order 13706, employers must provide up to 56 hours of paid sick leave annually, with the sick leave contributions being in addition to health and welfare fringe benefit contributions.

The document specifies that all solicitations and service contracts opened or awarded on or after July 7, 2025, must include updated SCA Wage Determination (WD) reflecting the new benefit rates. For Hawaii specifically, the health and welfare fringe benefits level will vary: $2.42 per hour for employees covered by the Hawaii Prepaid Health Care Act, $5.09 per hour for employees on contracts covered by Executive Order 13706, and different rates for employees with varying health care benefit requirements. The new rates will be published on SAM.gov and the Wage and Hour Division websites on or about July 7, 2025.