ES-05Estimating

Prevailing Wage Calculator (Davis-Bacon)

What to calculate next

Tools commonly used alongside this calculation

Explanation

A prevailing wage calculator works out what you must pay a worker on a Davis-Bacon job and how much of it can come from benefits instead of cash. On federal construction contracts over $2,000, the Davis-Bacon Act requires the prevailing wage published in the wage determination for the project’s county and trade. That wage has two interchangeable parts — a basic hourly rate and a fringe benefit rate — and you can satisfy the fringe with cash, a bona fide benefit plan, or a mix of both.

How prevailing wage and fringe credit work

The total package is the base rate plus the required fringe. Any bona fide benefits you fund count as a credit against the fringe; whatever is left must be paid as cash on top of the base wage. The cash wage plus the benefit credit add up to exactly the full package. To compare against your real cost of labor, pair this with the labor burden calculator, which turns a base wage into the fully burdened hourly rate.

prevailing package = base rate + required fringe
fringe credit = min(benefits provided, required fringe)
cash in lieu = required fringe − benefits provided (if positive)
cash wage = base rate + cash in lieu
TermMeaning
base rateBasic hourly rate from the wage determination
required fringeFringe rate from the wage determination, $/hr
benefits providedBona fide plan contributions, as $/hr (annual cost ÷ hours)
cash in lieuUnfunded fringe paid as taxable cash wages

Three ways to satisfy the fringe

For a $30.00 base and a $12.00 required fringe, the package is $42.00 per hour. You can pay all $12.00 as cash, fund $12.00 into a bona fide plan, or split it — for example $8.00 in benefits and $4.00 in cash. Paying fringe into a plan instead of cash lowers your payroll-tax and workers’ comp burden, because those are charged on cash wages.

MethodCash wageBenefits
All cash$42.00$0.00
All benefits$30.00$12.00
Mix ($8 plan)$34.00$8.00

Overtime, exclusions, and where the rates come from

On Davis-Bacon overtime the half-time premium applies to the basic rate only — the fringe is paid at straight time for overtime hours, so the overtime rate is base × 1.5 plus the full fringe. When you estimate the hours behind a bid, the man-hours calculator helps size the crew and schedule.

Legally required employer costs — Social Security and Medicare (FICA), federal and state unemployment (FUTA/SUTA), and workers’ compensation — do not count toward the fringe credit; only bona fide benefits do. When you convert an annual benefit cost to an hourly credit, divide by the worker’s total annual hours actually worked — both Davis-Bacon and private jobs — not a flat 2,080; using 2,080 for someone who works more over-credits the fringe and is DOL’s most-cited fringe violation. This tool computes the standard prevailing-wage math from rates you enter; the actual base and fringe rates must come from the official wage determination on SAM.gov for your project’s county and classification. Always confirm current rates and any state prevailing-wage rules before submitting certified payroll.

Frequently asked questions