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Prevailing Wage Calculations

Prevailing Wage Calculations

The prevailing wage rate shall be a weighted average of the total wage-fringe benefit packages for all journeyman hours submitted by contractors.

To see how different factors can influence the prevailing wage rate, we have created this flowchart that will take you through the prevailing wage process. 

Example

Assume that 2,500 hours are submitted for the occupational title of "Laborers" for a county in Missouri. The hours submitted include:

Hours Wage-Fringe Benefit Package Hourly Rate
1,500 Total Package $45.00
300 Total Package $38.00
200 Total Package $35.00
200 Total Package $31.00
2,200 Total Hours    

Prevailing Wage Calculation

200 hours of apprentice wages and 100 hours of OJT wages are excluded, resulting in a new total of 2,200 hours.

1,500 hours x $45.00 = $67,500
300 hours x $38.00 = $11,400
200 hours x $35.00 = $7,000
200 hours x $31.00 = $6,200
2,200 total hours = $92,100

$92,100/2,200 hours = $41.86/hour

Calculated Prevailing Wage: $41.86