Fringe Rate Changes for Fiscal Year 2026: What You Need to Know
The Controller’s Office and the Budget Office are working on updating the fringe rates applicable to fiscal year 2026. Formal rate approval was received on March 10, 2026, and is applicable to transactions incurred on or after July 1, 2025.
Updated Fringe Rates
- Faculty/Classified Fringe: 38.8% (increase from 38.1%)
- Hourly Fringe: 7.4% (decrease from 7.5%)
Update Process – Controller’s Office
- Payroll:
- Input new rates in Banner.
- New rates will be automatically applied to labor starting March 25, 2026 (Pay Period 7).
- Cost Accounting and Financial Reporting:
- Prepare and post adjusting journal entries in Banner for all applicable labor from July 1, 2025, through March 24, 2026.
- Grants & Contracts (G&C) Accounting:
- Fringe adjustments on ongoing grants and contracts will be included on invoices.
- If a grant or contract has ended, departments will be required to provide an account to cover the unbilled fringe.
Update Process – Budget Office
The Budget Office will process funding uploads to support budget adjustments related to E&G fringe increases and any applicable University Fee increases.
For more information, visit: https://controller.vcu.edu/cost-analysis/fringe-benefit-rates/
Categories Budget, Controller's Office