FAR and DFARS › FAR Part 22: Application of Labor Laws to Government Acquisitions › Subpart 22.10

FAR 22.1016 Statement of equivalent rates for Federal hires.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section explains how a contracting activity must prepare the statement of equivalent rates for Federal hires required by the clause at 52.222-42. It tells the contracting activity which wage rates and fringe benefits to list for the service employee classes expected to work on the contract, using General Schedule or Wage Board pay as the reference. It matters to contractors because it describes the Federal pay figures that will appear in that statement.

Applies to: Contracting activities preparing the statement required under the clause at 52.222-42

What it requires

  • Set forth the wage rates and fringe benefits that would be paid by the contracting activity to the various classes of service employees expected to be used under the contract if 5 U.S.C. 5332 and/or 5 U.S.C. 5341 were applicable.
  • For blue collar employees, use the basic hourly rate for each class, based on Wage Board pay schedule step two for nonsupervisory service employees and step three for supervisory service employees.
  • For white collar employees, use an hourly rate for each class obtained by dividing the general pay schedule step one biweekly rate by 80.

Key terms: Statement of Equivalent Rates for Federal Hires · wage rates · fringe benefits · service employees · Wage Board

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The statement required under the clause at 52.222-42, Statement of Equivalent Rates for Federal Hires, (see 22.1006(b)) shall set forth those wage rates and fringe benefits that would be paid by the contracting activity to the various classes of service employees expected to be utilized under the contract if 5 U.S.C. 5332 (General Schedule—white collar) and/or 5 U.S.C. 5341 (Wage Board—blue collar) were applicable.

(b) Procedures for computation of these rates are as follows:

(1) Wages paid blue collar employees shall be the basic hourly rate for each class. The rate shall be Wage Board pay schedule step two for nonsupervisory service employees and step three for supervisory service employees.

(2) Wages paid white collar employees shall be an hourly rate for each class. The rate shall be obtained by dividing the general pay schedule step one biweekly rate by 80.

(3) Local civilian personnel offices can assist in determining and providing grade and salary data.

Sections it refers to

  • 52.222-42 Statement of Equivalent Rates for Federal Hires.
  • 22.1006 Solicitation provisions and contract clauses.

Sections that refer to it

  • 22.1006 Solicitation provisions and contract clauses.
  • 22.1008-1 Obtaining wage determinations.

← 22.1015 Discovery of errors by the Department of Labor. · 22.1017 [Reserved] →

Rule changes for FAR Part 22

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 22.1016 Statement of equivalent rates for Federal hires · SpendQuery