Germany SOKA-BAU rules and 2026 rates for posted construction workers

Foreign employers delegating construction workers to Germany must participate in the national holiday fund. This requirement falls under the German Act on the Posting of Workers Abroad (AEntG). Officially known as Sozialkassen der Bauwirtschaft (SOKA-BAU), the fund manages paid leave across the construction sector. To comply, foreign companies must register with both SOKA-BAU and the German Central Customs Authority (Generalzolldirektion).

Participation depends entirely on the tasks performed on the German site. Construction work subject to SOKA-BAU includes bricklaying, plastering, drywall work, building drying, road construction, tile laying, and façade work. Specific sectors such as glazing, plumbing, carpentry, or electrical installation are exempt. However, this exemption disappears if workers in those trades perform tasks specifically listed as construction work.

After confirming your activities fall under these rules, you must submit the required paperwork. Foreign companies must provide contracts for work, Commercial Register entries, business licences, and trade registrations. You can submit these documents electronically via an online portal, by email to aev@soka-bau.de, or by post to the ULAK office in Wiesbaden, Germany.

Employers from non-EU countries like Bosnia and Herzegovina, Serbia, North Macedonia, or Turkey face additional requirements. They need a letter of assurance from the Federal Employment Agency and work permits. Authorities will only issue these documents after verifying proper SOKA-BAU participation.

With registration complete, employers must align their payroll with current financial thresholds. Effective January 1, 2026, Germany raised its statutory minimum wage from 12.82 euros to 13.90 euros per hour. This rate applies directly to work covered by the holiday fund.

From July 1, 2026, the SOKA-BAU contribution rate for the paid leave scheme decreased to 14.7%, down from the previous rate of 15.1%. Employers must use this new, lower rate starting with their July 2026 monthly report. The contribution is based solely on the gross wage earned for work performed in Germany. Wages paid for work performed in the home country remain exempt. SOKA-BAU contributions are paid entirely by the employer and must not be withheld or deducted from the workers' wages.

These mandatory contributions finance the paid time off your employees earn. A posted worker in Germany acquires one day of leave for every 12 days of employment. This accrual equals 30 paid leave days per full year of employment. Remuneration for paid annual leave amounts to 14.25% of the gross wage earned by the worker in Germany.

SOKA-BAU reimburses the employer for the holiday pay paid to employees. To receive this reimbursement, the employer must meet all registration requirements and have no contribution arrears. If an employee does not take their accrued holiday during their work in Germany, they can apply directly to SOKA-BAU for an equivalent payment. They must wait three months after completing their work to submit this application.

Maintaining access to these reimbursements requires strict adherence to monthly schedules. The employer must submit an electronic declaration to SOKA-BAU by the 15th day of the following month. Contribution payments must reach SOKA-BAU's account by the 28th day of the following month. Delays in paying contributions result in an interest charge of 0.9% on the outstanding amount for every commenced month of delay.

SOKA-BAU may initiate legal proceedings for unpaid contributions. The exclusive competent court for these disputes is located in Wiesbaden, Germany. Furthermore, non-compliance with minimum wage or SOKA-BAU rules can result in administrative fines of up to 500,000 euros.