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 2026 Fringe Benefit Rates
The University of Minnesota Office of Budget and Finance has received a new rate agreement from the Department of Health and Human Services (DHHS) Cost Allocation Services for the FY26 fringe benefit rates as follows:
FY26 Fringe Benefit Rates
- Academic = 36.6%
- Non-Academic = 32.3%
- Student Professional with GA Health = 24.2%
- Trades/Partial Benefits = 8.0%
- Student Professional with UPlan Health = 26.1%
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 7/28/25 and ending 8/10/25 for the pay date of 8/20/2025.
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.