Fringe Benefit Rates

Rutgers University uses fringe benefit rates for purposes of charging benefits to sponsored projects, thus it is required by the Department of Health and Human Services (DHHS) to submit and negotiate an annual fringe benefit rate proposal. This process is carried out by the University’s Cost Analysis and Reporting Office.  When finalized, the rates are appended to the University’s F&A Rate Agreement.

Rutgers develops and submits its fringe benefit rates annually to DHHS Cost Allocation Services (DHHS-CAS), our federal cognizant audit agency for approval.  Prior Year Provisional fringe benefit rates are those that are in effect until the current FY rates are approved by DHHS-CAS. Once approved, the final negotiated fringe benefit rates become effective July 1 of the fiscal year noted by the rate agreement. 

Rutgers’ composite fringe benefit rate is a hybrid of benefit components as detailed below:

State of New Jersey Fringe Rate: These rates are proposed and federally negotiated annually by the State of New Jersey. As a state entity, most of the benefits included in the State’s fringe benefit rates are applicable to Rutgers’ employees.  The below benefits are passed down from the approved State rate and applicable:

  • Pension/Retirement
  • Health Insurance
  • Unemployment Insurance
  • Disability Insurance

Rutgers Only Claims-Made Rates: These rates are proposed and federally negotiated annually by Rutgers University. Claims-made fringe benefits are benefits where the University only incurs costs when a claim is made. These benefits include:

  • Unused Sick Leave
  • Workers’ Compensation
  • Tuition Remission
  • Vacation Payout
  • ABP Pension Match

Once both sets of rates are approved annually, implementation and application of the composite rate may begin. View a  breakdown of the current composite fringe benefit rate by component.

Salary & Wage Description Salary Account Composite Fringe Account FY2021 Negotiated Composite Rate ADD FICA/Medicare (51250 & 51260) FULL FY2021 Fringe Rate
Staff 50010 51110 45.96% 7.65% 53.61%
Tenured Faculty 50020 51120 45.96% 7.65% 53.61%
Tenure Track Faculty 50030 51130 45.96% 7.65% 53.61%
Non-Tenure Track Faculty 50040 51140 45.96% 7.65% 53.61%
Teaching/Graduate Assistants 50050 51200 22.69% 0.00% 22.69%
Post Doctoral Associates 50060 51180 45.42% 7.65% 53.07%
House Staff (RBHS) Only 50070 51160 23.00% 7.65% 30.65%
Contracted 50100 51190 45.96% 7.65% 53.61%
Student Researcher Stipend 50110   0.00% 0.00% 0.00%
 Post Doctorate Fellowship 50115   0.00% 7.65% 7.65%
Salary Suspense 50190 51220 45.96% 7.65% 53.61%

View our prior year rate agreements.