The leave fund contribution amounts to 15.20 % since January 2022.
Contributions are due on the 28th of each following month. SOKA-BAU does not issue an invoice.
Do not post workers for the entire month but report the exact posting periods, including the respective first and last days of every posting for each calendar month. Please remember to also state the exact number of total hours worked per month for each worker.
Leave fund contributions are used for financing workers’ leave allowances. You can find an overview of the leave fund scheme, including explanations to reimbursements, pay in lieu of leave and compensation on this website.
As an employer, you grant your workers the leave they acquired during their posting in Germany and pay them the respective leave allowance.
When granting your workers the leave they acquired in Germany, SOKA-BAU will reimburse you accordingly. Please state in your monthly report whether your worker took leave and also indicate the amount of leave allowance paid to him. Reimbursements can only be made if you have paid all contributions due to SOKA-BAU.
A worker has not worked in Germany for at least three months. Can he still claim his leave entitlement?
A worker can apply to SOKA-BAU for pay in lieu of leave. Such payment can only be made to the worker in question. It is not possible to make such payment to the employer concerned.
If a worker has neither taken any leave nor received any pay in lieu of leave, he can apply with SOKA-BAU for compensation. It is not possible to pay such compensation to the employer concerned.
The leave allowance amounts to 14.25% of the respective gross wage.
I already pay leave allowance in my home country. Why does a leave allowance apply when posting workers abroad?
Leave allowances are governed by German law. As a consequence, you have to pay leave scheme contributions to SOKA-BAU when posting commercial workers to constructions sites in Germany. Such contributions supersede any leave scheme contributions you may pay in your home country during the posting period. Commercial workers are therefore not entitled to two leave allowances.
Exceptions to this rule only apply if you pay contributions to a comparable leave scheme in your home country. There are mutual recognition agreements to this effect. At present, this applies to leave schemes in Belgium, Denmark, France, Italy and Austria.
We are obliged to withhold income tax when we pay you money. This lump sum is paid to the tax office in Wiesbaden. If you send us an application for pay in lieu of leave or compensation, we deduct your income tax from the amount.
We send you a special income tax certificate once a year, stating how much income tax we paid to the tax office.
Would you like to know whether you are eligible for a refund?
We are not responsible for tax refunds.
You should submit an application for a refund to your employer’s responsible tax office. Ask your previous employer from the calendar year in which you were entitled to take leave.
Send all the necessary documents and information by post to the responsible tax office.
Does your employer not have to pay tax in Germany? In that case, please contact the tax office responsible for your home country.