Hardship allowance is a collectively agreed surcharge for activities under particularly strenuous or difficult working conditions in the construction industry.
It supplements the regular hourly wage, for example the Hourly wage rate (HWR), when special circumstances make the work considerably more difficult.
Collective agreement basis
The conditions and design of hardship allowances are regulated by relevant collective bargaining agreements in the construction industry, particularly the BRTV and supplementary regulations.
The key factors are the type of work, the working environment, and the collective agreement classification.
Typical use cases
- Working in exceptional weather conditions
- Activities with increased physical exertion
- Working in exceptional environmental conditions
- Use in particularly demanding work areas
Distinction from other surcharges
Hardship allowances must be distinguished from other allowances, such as overtime allowances or night work allowances. While the latter are linked to temporal factors, hardship allowances relate to the nature or conditions of the activity.
Implications for construction payroll accounting
In the Payroll accounting Hardship allowances must be recorded separately. They increase gross pay and can affect other payroll-relevant components.
Correct tariff classification is a prerequisite for legally compliant invoicing.
FAQ
What is a hardship allowance?
A contractually regulated bonus for particularly strenuous or difficult working conditions.
Is every burdensome activity subject to a surcharge?
Whether a supplement is granted depends on the relevant collective bargaining agreements.
Why is it relevant for construction payroll?
Because it influences the gross remuneration relevant for billing and must be considered separately.
Conclusion
The hardship allowance is a collectively agreed supplement for special working conditions in the construction industry. It supplements the collectively agreed hourly wage and must be correctly taken into account in construction payroll accounting.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
