Soka Bau is the joint institution of the social partners in the German construction industry. Put simply, it is a holiday fund: employers pay contributions into it, and those contributions finance holiday entitlement for construction workers who move between contracts and employers.
For foreign companies one thing matters: the obligation starts on the first day of work in Germany, not after some qualifying period or headcount.
Who has to register
Every company that predominantly carries out construction work in Germany and has employees. It is the nature of the activity that decides, not where the company is registered. A sole trader without employees pays no contributions, but taking somebody on for a contract changes that.
What is reported
- company registration when workers are posted for the first time
- a monthly report for each worker — hours worked and gross wages
- payment of the contribution calculated from gross wages
- a completion report when the contract ends
Reports are due every month, even in a month with no work — in which case a nil report is filed. Those are the ones most often forgotten.
When a report is not filed
Soka Bau will estimate the contribution itself and issue an assessment. The estimate tends to be higher than reality, and challenging it means supplying what should have been sent long ago. Late payment interest is added on top.
We prepare the registration and the monthly returns for you — including the nil reports that in practice are forgotten most often.
