Glossary
What is health and welfare (H&W) under the SCA?
What is health and welfare (H&W) under the SCA?
Health and welfare is the fringe benefit on a Service Contract Act wage determination, stated as a dollar amount per hour. Unless the wage determination says otherwise, it is due for every hour paid, including paid leave, up to 40 hours a week and 2,080 hours a year per employee, in benefits, cash or both.
Updated
Key facts
- Stated per hour on the wage determination, alongside vacation and holidays.
- Due on paid vacation and holiday hours, not only hours worked.
- Can be met with bona fide benefits, cash in lieu, or a combination.
Why it matters for facility-services bids
Health and welfare is often the second-largest labor line after wages. Leaving it off paid leave hours is a common reason a janitorial bid comes in too low.
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