SOKA-BAU is the umbrella brand under which the Holiday and Wage Compensation Fund of the Construction Industry (ULAK) and the Supplemental Pension Fund of the Construction Industry (ZVK) operate. Both institutions implement collectively agreed social fund procedures for the construction industry.
SOKA-BAU is the pension institution for the construction industry in Germany.
SOKA-BAU does not refer to a single social fund, but rather to the joint umbrella brand of ULAK and ZVK. Both institutions were established by the collective bargaining parties of the construction industry.
Special collective agreement regulations for the construction industry are implemented via the social fund procedures. These include, in particular, procedures relating to holiday, vocational training and supplementary pension provision.
What are ULAK and ZVK?
Under the umbrella brand SOKA-BAU, there are two distinct institutions with their own responsibilities:
- ULAK: The Holiday and Wage Compensation Fund of the Construction Industry provides, in particular, services within the scope of holiday and vocational training procedures.
- ZVK: The Supplementary Pension Fund of the Construction Industry is responsible, in particular, for supplementary retirement provision in the construction industry.
In short: SOKA-BAU is the umbrella brand, with ULAK and ZVK as the underlying institutions.
What role does the VTV play?
A central collective bargaining agreement is the Collective Agreement on the Social Security Fund Procedure in the Construction Industry (VTV).
The VTV governs, among other things, the operational and personal scope as well as essential components of the social fund procedures. Whether a particular establishment is covered by these regulations therefore depends on the specific scope of the relevant collective agreement and statutory provisions.
What does SOKA-BAU mean for Construction payroll?
For businesses that take part in the social fund procedure, SOKA-BAU-related information, contributions and reports can also be relevant for the Construction payroll.
However, concrete participation, the contribution amount, reporting, and practical administration do not belong to the definition of the term, but rather to the social fund procedure of the respective company.
SOKA-BAU and the social fund procedure explained in detail
We explain in detail in our article when a business may be affected by SOKA-BAU and how participation, contributions, returns, deadlines and holiday procedures work in practice. Guides to SOKA-BAU.
