How the calculation works
- Total rate = basic hourly rate + fringe rate, for the worker's classification on the wage determination.
- Fringe can be paid three ways: cash, contributions to bona fide plans, or a mix. Whatever your plans don't cover (at their annualized hourly value) is owed in cash for every hour.
- Overtime hour = basic rate × 1.5 + fringe at the straight rate. The premium is never figured on fringe or on cash paid in place of fringe.
- Apprentices get the program's percentage of the journeyworker basic rate; fringe as the program says, or the full fringe if it says nothing.
Worked example
Electrician, wage determination $40.00 + $14.00. The contractor pays $7,800 a year for the worker's health plan and the worker logs 2,000 hours a year (public and private), so the annualized credit is $3.90 an hour. This week: 40 straight hours and 4 overtime.
| Item | Calculation | Result |
|---|---|---|
| Cash fringe owed per hour | $14.00 − $3.90 | $10.10 |
| Minimum cash, straight time | $40.00 + $10.10 | $50.10 |
| Minimum cash, overtime | $40.00 × 1.5 + $10.10 | $70.10 |
| Week's minimum total value | 40 × $54.00 + 4 × $74.00 | $2,456.00 |
Press Try an example in the calculator to load these numbers. More on plan credits in Davis-Bacon fringe benefits; apprentice rules in apprentice rates and ratios.
What it doesn't do
- It doesn't look up rates. Copy them from the wage determination your contract uses.
- It doesn't decide whether overtime law applies to your contract or state; untick the box if it doesn't.
- State prevailing wage laws can add rules (daily overtime, Saturday or holiday rates, training fund contributions). Check your state's rate sheet.
- Plan contributions above the fringe rate are not counted toward the basic rate here.
Sources
- DOL Fact Sheet 66E: fringe benefits under the Davis-Bacon and Related Acts
- 29 CFR 5.25: rate of contribution or cost for fringe benefits
- 29 CFR 5.5: contract provisions (apprentices, overtime)
A calculation aid, not legal advice. Your contract and wage determination govern.
Related guides
- Find and read your wage determination
- Davis-Bacon fringe benefits, with examples
- Davis-Bacon Act requirements
- WH-347 instructions, field by field
Questions
How do you calculate prevailing wage?
Basic rate + fringe rate from the wage determination, owed for every straight-time hour as cash, plan contributions or both.
Is fringe included in overtime?
Fringe is owed on overtime hours at the straight rate, but the 1.5× premium applies to the basic rate only.
How do I calculate cash in lieu of fringe?
Fringe rate minus your annualized plan credit per hour; pay the rest in cash for every hour.
Does this work for state prevailing wage?
For the basic rate + fringe structure, yes. Add any state-specific rules like daily overtime yourself.
Is my data saved or sent anywhere?
No. The calculator runs in your browser and nothing is sent.