Fringe Benefit Rates

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

FY 2023 Fringe Benefit Rates

The University of Minnesota Office of Budget and Finance has signed an agreement with the Department of Health and Human Services (DHHS) on the FY23 fringe benefit rates as follows:

FY23 Fringe Benefit Rates

• Academic = 36.8%
• Non-Academic = 32.0%
• Student Professional with GA Health = 24.1%
• Trades/Partial Benefits = 8.3%
• Student Professional with UPlan Health = 25.7%

The new fringe benefit rates should be used in sponsored proposal budgets for all work that will be conducted on or after July 1, 2022. To accommodate proposals that have already been submitted to SPA, or are in progress in the academic departments, SPA will allow the old rates to be used during a brief period of transition.

Revisions to proposal budgets will not be required if any of the following conditions exist:

• The proposal has already been submitted to SPA
• The proposal will be submitted to SPA prior to July 1st
• The PRF has already been created and the proposal has been routed for approval

However, since all of the rates have increased significantly, PI’s and their staff are strongly encouraged to use the new rates in their proposals immediately if the project will be conducted in the next fiscal year.

The EGMS support team will update EGMS to reflect these new rates.

The Budget Office will soon be posting the fringe rate matrix and graduate tuition remission table at U Budget Instructions: Annual Budget. After the Board of Regents approves the FY23 budget, those documents will also appear in the appendices section of the budget policy.

Please contact David Hagen (hagen027@umn.edu), Director of the Office of Cost Analysis, or your SPA Grant & Contract Officer if you have questions about using the new rates in your proposals.