SOKA-BAU Claims & Default Notices

You only have one week! If you receive a payment order, you have just seven days to file an objection.

Contact us immediately for advice: Get in touch with us today to ensure your rights are protected.

The contribution rate for the social funds is governed by the Collective Bargaining Agreement for the Construction Industry (VTV). In principle, it can be calculated straightforwardly. Here’s an example calculation:

For skilled workers in the “Western Tariff Region,” a contribution rate of 28.8% of the gross wage has applied since January 1, 2019 (retroactive for up to three years). A skilled worker earning €3,000 gross per month would incur a monthly contribution of €624. Under the same conditions, the financial burden for retroactive payments covering three years would amount to €22,464.

The contribution rate is regularly redefined by the collective bargaining parties. Contributions will also continue to apply in the future unless the type of activity changes. While reimbursement from the SOKA-BAU’s contractual benefits is possible, it can only be determined on a case-by-case basis.

You may have counterclaims against SOKA-BAU; however, these typically amount to only 50–60% of the contributions. As a result, mandatory participation in the social funds system inevitably represents a significant financial burden.

It depends. SOKA-BAU’s assessments are often unreliable, as they have only limited means of verification. In many cases, they lack precise details about your activities (unless you have explicitly provided such information). Our experts identify these errors and ensure that your case is thoroughly reviewed.

Find out more about whether you are obligated to make payments to SOKA-BAU.

SOKA-BAU is not a government authority and therefore cannot enforce company visits or similar measures. Instead, they request information or demand contributions based on:

• Preliminary research using data from various authorities, and/or
• Information available on your company’s website.

Furthermore, affected businesses generally cannot accurately determine whether they are obligated to pay SOKA-BAU contributions. The criteria for being classified as a construction company under the VTV are highly opaque. With numerous collective agreements and exemptions, it is increasingly difficult to navigate.

Example:
If you install windows, SOKA-BAU may classify you as obligated to participate in the social fund system. However, if the windows are pre-treated or modified, this might qualify as glazing work, in which case SOKA-BAU cannot demand contributions.

These ambiguities have led to a patchwork of court rulings, individual cases, and exceptions, which are difficult to interpret—even for SOKA-BAU itself. Despite this, they often attempt to enforce claims in borderline cases, as resistance is uncommon.

How We Can Help:
Our experts will review your situation, identify potential misclassifications, and advise you on whether you are truly obligated to pay. Let us help you navigate this complex process and protect your interests.

If your company falls under the scope of the Collective Bargaining Agreement on the Social Fund Procedure in the Construction Industry (VTV), it is classified as a construction company. A company in the construction industry is automatically considered a mandatory member of SOKA-BAU. As a mandatory member, you are required to pay contributions.

If you are uncertain about your company's classification or contribution obligations, our legal experts can assess your specific situation and provide clarity, ensuring you comply with applicable regulations while exploring options to manage or minimize your obligations.

The abbreviation SOKA-BAU stands for the Sozialkassen der Bauwirtschaft (Social Funds for the Construction Industry). It encompasses the collective bargaining parties of the construction industry: the Urlaubs- und Lohnausgleichskasse (ULAK) (Holiday and Wage Compensation Fund) and the Zusatzversorgungskasse des Baugewerbes AG (ZVK) (Supplementary Pension Fund for the Construction Industry). SOKA-BAU is not a governmental institution but a private association. Its mission is to secure training allowances, private pensions, and vacation entitlements for employees in construction companies.

Founded in 1949 as a non-profit holiday fund for the construction industry, SOKA-BAU was established to mitigate the significant disadvantages faced by construction workers due to seasonal conditions. During the winter months, many construction sites could not operate, leaving workers without employment for extended periods. Short-term employment contracts in the construction industry often meant that workers were unable to fully utilize their vacation entitlements. This situation also posed challenges for vocational training and the provision of private pensions.

To address these issues, workers and employers in the construction industry collaborated to create these cross-company institutions through collective agreements. The result was a system in which employers were required to contribute to compensate for these disadvantages, ensuring greater stability and fairness for construction workers.