The amount of contributions payable to the leave scheme is calculated on the basis of the gross wages. Since January 2019 the percentage of monthly contributions has been 15.40 %. The contribution has to be paid by every employer on a monthly basis. Contributions must be remitted to the bank account of SOKA-BAU by the 28th of the following calendar month.
When an employer grants and pays a commercial worker leave allowance, SOKA-BAU will reimburse the employer with 14.25% of the gross wages of that commercial worker. It is irrelevant whether leave entitlements were accumulated during the employment relationship with the current employer or with a previous one. This procedure secures the leave entitlements of commercial workers and ensures that the burden is shared by the employers concerned.
The leave fund contribution has to be paid by the employer in addition to the wages and must not be deducted or withheld from the commercial worker’s wages.
If an employer defaults on his monthly contribution payments, SOKA-BAU will charge interest on arrears of 0.9 % on the total amount contributions due for every month and part thereof.
SOKA-BAU is entitled to take legal action against any employer in default. The sole place of jurisdiction for legal disputes between employers headquartered abroad and SOKA-BAU [Leave and Wage Equalisation Fund of the German Construction Industry (Urlaubs- und Lohnausgleichskasse der Bauwirtschaft)] is the labour tribunal [Arbeitsgericht] in Wiesbaden.