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SOKA-BAU: contributions and refunds for foreign companies

A letter from Wiesbaden demanding contributions surprises many foreign construction companies. The SOKA-BAU system covers them too — but contributions are matched by benefits worth claiming.

Dr. Artur Barczewski
Dr. Artur BarczewskiRechtsanwalt · attorney-at-law
≈ 6 min read
updated: July 2026

What SOKA-BAU is — and who it covers

SOKA-BAU are the joint social funds of the German construction industry, financing above all construction workers’ holiday entitlements. The obligation follows from universally binding collective agreements and covers businesses performing construction work in Germany — including foreign posting companies.

The decisive and often contested question: does your business fall under the collective agreements at all (do “construction services” predominate)? The validity of the claims depends on it.

Contributions and what you get back

For posted workers a holiday fund contribution is paid on gross wages. In return workers acquire holiday claims against the fund, and the company can under conditions obtain refunds (e.g. where it paid the holiday remuneration itself). Many foreign companies pay in but never claim back what they are owed — the procedures are formalised and German-language.

Disputes with SOKA-BAU

SOKA-BAU consistently sues for arrears — before a specialised labour court in Wiesbaden. We defend on two tracks: challenging coverage by the collective agreements where there are grounds, and clean accounting plus refund applications where the obligation exists.

Do not ignore the letters

Silence works against you

Unanswered SOKA-BAU letters end in default judgments and enforcement — including abroad. Reply within the deadlines, ideally after legal review.

Does this affect you?Describe your case — we reply concretely and quickly.Contact a lawyer
Dr. Artur Barczewski
Dr. Artur Barczewski
Rechtsanwalt · attorney-at-law

Author of this article. Represents clients before courts across Germany. View profile →

This article is for information only and does not constitute legal advice. The law may change — consult a lawyer about your individual case.

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