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 2027 Fringe Benefit Rates
The University of Minnesota’s fringe benefit rates for FY27 are currently awaiting Department of Health & Human Services (DHHS) approval due to a backlog. DHHS has not yet reviewed our rates and cannot provide an estimated timeline.
Following DHHS guidance, we will implement the FY27 proposed rates effective the first pay period of the new fiscal year.
FY27 Fringe Benefit Rates
- Academic = 38.5%
- Non-Academic = 34.9%
- Student Professional with GA Health = 28.9%
- Trades/Partial Benefits = 8.3%
- Student Professional with UPlan Health = 28.1%
What this means for your unit:
- Rate Implementation: The proposed FY27 fringe benefits rates will be applied starting the first pay period.
- No Retroactive Adjustments: Once DHHS approves the final rates, any changes will be implemented going forward in the next available pay period. No retroactive adjustments to fringe rates will occur.
- Graduate Tuition Remission: Graduate tuition benefits follow a different approval process. The FY27 rates for graduate tuition remission will take effect for fall semester as scheduled.
- Grant Proposals: Proposal budgets for sponsored awards should begin using the proposed FY27 rates as soon as possible.
Per the Office of Budget and Finance and EFS module support the new fringe rates will be implemented in PeopleSoft with the pay period beginning 6/15/26 and ending 6/28/26 for the pay date of 7/8/2026.
The support team will update MN-GEMS to reflect these new rates very soon. Revisions to proposal budgets that have already been created in MN-GEMS using the old rates will not be required.
The Office of Budget and Finance will soon post the fringe rate matrix and graduate tuition remission table on their Annual Budget Instructions page. Those documents will also appear in the appendices section of the budget policy.
Please contact David Hagen, 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.