# What is health and welfare (H&W) under the SCA?

URL: https://us.falkview.com/glossary/health-and-welfare/
Updated: 2026-11-04

> **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.

## 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.

## Sources

- [29 CFR part 4, labor standards for federal service contracts](https://www.ecfr.gov/current/title-29/subtitle-A/part-4)
- [SAM.gov wage determinations](https://sam.gov/content/wage-determinations)

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