Fringe rate is an indirect cost rate which expresses the relationship between costs accumulated in a fringe pool and the related base for allocating such costs, for a given period of time.
Fringe rate is the amount that an employer must contribute for health care for each hour worked by a federal contract employee. Fringe rates set by the Department of Labor. The government pays the fringe rate through the employer, and it is the precise amount that the employer is allocated for health care.The employer may, however, choose the type of health plan that it wishes to provide for its contract employees. [FCE Benefit Adm'rs, Inc. v. George Wash. Univ., 209 F. Supp. 2d 232, 237 (D.D.C. 2002).]