In instances where contractors in Illinois pay the benefits portion (health and welfare) of the prevailing wage rate into a bona fide fund rather than directly to the employee, the following calculation should be used:
52 (# of weeks in a year) x 40 (# of hours in a week) = 2,080
$X (contribution per month) x 12 (# of months in a year) = $XX
$XX/2,080 = $XXX (amount of credit)
$XXX is the amount that can be credited (subtracted) per hour for the benefit portion of the wage rate.
*The multipliers remain the same for all calculations for credits to benefits portions.
*If the benefit amount does not meet or exceed what the prevailing wage requires, then the deficient amount must be made up to the employee in the form of wages.
For example, if an IL contractor contributes $86.66 per month to a bona fide fund then the calculation would be as follows:
$86.66 X 12 = $1,040
$1,040/2,080 = $0.50
$0.50 is the credit allowed.
Therefore, if the health and welfare portion of the wage rate is $5.05 per hour, the contractor would pay $4.55 per hour because they have already contributed $0.50 to the bona fide fund.