Prevailing Wage Fringe Benefit Calculator
On Davis-Bacon covered federal construction work, the prevailing wage has two parts: a basic hourly rate and a fringe benefit rate. Employers can satisfy the fringe portion with bona fide benefits, with cash, or with a mix. This calculator takes the base rate, fringe rate and the hourly value of benefits you provide from the applicable Department of Labor wage determination, then shows the total prevailing wage, the cash you must add in lieu of any benefit shortfall, and the total hourly cost. All rates are editable inputs from your wage determination.
Davis-Bacon fringe formula
Total prevailing wage = base rate + fringe rate Cash in lieu = max(0, fringe rate - benefits provided) Hourly cash owed = base rate + cash in lieu Total cash = hourly cash owed x hours worked
Benefits provided above the fringe rate do not reduce the base rate; the base must always be paid in cash.
Worked example
Base 32.50, fringe 12.00, benefits provided 8.00. Cash in lieu = 12.00 - 8.00 = 4.00. Hourly cash owed = 32.50 + 4.00 = 36.50. For 40 hours: 1,460.00.
Prevailing wage fringe: frequently asked questions
What is a prevailing wage fringe benefit?
Under the Davis-Bacon Act, contractors on federal construction work must pay covered workers a prevailing wage that has two parts: a basic hourly rate and a fringe benefit rate. The fringe portion can be paid as bona fide benefits (such as health insurance, pension or vacation), as cash added to the paycheck, or as a mix of both.
How is the fringe obligation met?
The total prevailing wage equals the base rate plus the fringe rate. An employer can satisfy the fringe part by providing benefits whose hourly value equals the fringe rate. If the benefits provided are worth less than the fringe rate, the employer must pay the shortfall as cash. This calculator computes that cash-in-lieu amount.
Where do the wage rates come from?
The applicable base rate and fringe rate are set in the wage determination for the specific locality and trade, published by the US Department of Labor on SAM.gov (the system that hosts Davis-Bacon wage determinations). Because rates differ by area and job classification, this calculator takes them as editable inputs from the relevant determination.
Is the fringe rate paid on overtime hours?
Overtime premium is calculated on the basic rate, not the fringe rate, but the fringe benefit obligation still applies to all hours worked, including overtime hours. Consult the Department of Labor guidance and your wage determination for the exact treatment in your situation.
Official sources
- US Department of Labor: Davis-Bacon and Related Acts.
- US General Services Administration: Wage Determinations (SAM.gov).
Reviewed by the CalculatorHub team, edited by James Graham, 19 June 2026. See our methodology.