Fringe Benefit Rates

Northwestern University applies distinct employee benefit rates in the compensation of its personnel. These rates are charged to sponsored projects from which Northwestern personnel are paid.

Rates change annually on September 1.  A description of the components of the fringe benefit rates may be found within the current DHHS Rate Agreement (05/23/2017).

The FY2018 Fringe Benefit rates have been announced.  Being using these new rates effective immediately and until further notice.

 Description Covers FY 2017
(09/01/2016 - 08/31/2017)
FY 2018
(09/01/2017 - 08/31/2018)
Full Federal Benefits-eligible employees paid from Federal funds (direct federal and federal flow-through funds*.) 23.6% 25.7%
Full Non-Federal Benefits-eligible paid from non-Federal funds 27.2% 27.4%
Statutory Temporary employees, supplemental pay to regular employees 6.4% 6.6%
The Graduate School (TGS) student TGS teaching assistants, research assistants, graduate assistants 2.6% 2.8%
Other Student Hourly wages to student workers, non-Graduate School graduate students 0.0% 0.0%
Exempt Federal Work Study salaries & wages, KSM consulting 0.0% 0.0%

* Federal Flow-Through Funds are funds that originate from the federal government, but whose granting entity is not necessarily the federal government.

Please note: Effectie as of 08/15/17, we will not be utilizing projected rates. For all budgets keep the fringe at the current approved rate for all years of the budget.

For questions related to eligibility under any of the above indicated rates, see HR Benefit Eligibility or the FASIS manual.

Budget justification statement for proposal budgets:

Add the following statement to all federal proposal budget justifications:

Employee benefits have been calculated based on the following DHHS-approved rates:

  • 09/01/16 - 08/31/17.... 23.60%
  • 09/01/17 - 08/31/18.... 25.70%
  • 09/01/18 - 08/31/19 and thereafter.... 25.70% (estimated)

Add the following statement to all non-federal proposal budget justifications:

Employee benefits have been calculated based on the following DHHS-approved rates:

  • 09/01/16 - 08/31/17.... 27.20%
  • 09/01/17 - 08/31/18.... 27.40%
  • 09/01/18 - 08/31/19 and thereafter.... 27.40% (estimated)