FY26 Proposed Fringe Rates for Sponsored Projects

Drexel University has submitted the fringe benefit proposal to the U.S. Department of Health and Human Services (DHHS) to establish the fiscal year 2026 fringe benefit rates for sponsored projects. These rates are not final until we receive the official rate letter from DHHS, however, we do not expect any significant changes when they are finalized. It is anticipated that the University will not receive the approved, final rate letter for at least three to six months. Therefore, you should begin to utilize these proposed rates on any proposal submissions that will have salary and wages after July 1, 2025, to ensure that you have budgeted adequate funding. Coeus and Banner have been updated to reflect the new proposed rates effective July 1, 2025.

For fiscal year 2026, the Academy of Natural Sciences (ANS) will utilize the FY25 non-sponsored fringe benefit rates for research.

The fiscal year 2026 proposed fringe benefit rates for sponsored research are:

The full-time employee rate captures all full-time, benefit-eligible faculty and professional staff. Post-doctoral students hired as full-time professional staff are also included in the full-time employee rate. This group is considered one rate pool because they are all eligible for the same benefit offerings.

The part-time employee rate includes both part-time benefit eligible and non-benefit eligible employees (e.g. temporary employees, co-ops).

Please note that students are not subject to FICA tax per IRS regulations and as such, do not warrant a separate fringe rate.

If you have any questions regarding the new rates they can be directed to Evgeniya Belokon at 215.895.6327 or Gabrielle Berrios at 215.895.1730. Current and prior year rates and rate agreements can be found on the fringe benefit page of the Research Accounting website.