Since 1 January 2015, the daily supplement that the employer has to pay for each workday is calculated on the basis of the employee’s CA wage (hourly wage provided for in the collective agreement) according to the following formula:
(CA wage + 20 %) x factor
The factor is based on the normal weekly working hours. In the Supplements Directive in Federal Law Gazette II no. 419/2010, the Federal Ministry of Labour, Social Affairs, Health and Consumer Protection [Bundesministerium für Arbeit, Soziales, Gesundheit und Konsumentenschutz] (BMASGK) specified the following factors as of 1 January 2011:
- for 40 hours, the factor is > 11,85
- for 39 hours, the factor is > 11,55
- for 38,5 hours, the factor is > 11,40
Supplements that are not to be paid by the company (leave) are paid by BUAK. Details on exactly how supplements are paid are available here.
If the worker was paid on a piecework or incentive wage basis (§ 96 (1) line 4 ArbVG), the CA wage should be revaluated appropriately for the purposes of calculating the supplement, based on an existing collective agreement on piecework.
New provision for apprentices as of 1 January 2017
The calculation of the holiday supplement and holiday remuneration for apprentices is no longer based on the hourly wage provided for in the collective agreement plus a 20% increase, but solely on the hourly wage provided for in the collective agreement.
The supplement to wages to be paid pursuant to § 21a BUAG, in connection with § 21 line 1 and 2 BUAG to finance the cost of the additional holiday provision for shift work pursuant to § 4b BUAG, including the proportionate administrative costs is 2.80 times the hourly wage provided for in the collective agreement (including a 20% increase)pursuant to § 21a line 3 and 4 BUAG.
Since 1 January 2014, the shift holiday supplement is calculated as follows:
(CA wage x 1,20) x factor
The supplement paid by the company must be reviewed annually and changed if necessary. The daily supplement per employee for severance pay for the current year is calculated according to the following formula:
(Ca wage + 20 %) x 1,5
All supplements that the company pays to BUAK during a year go towards the payment of severance pay in the current year. This type of financing is known as an apportionment system.
In the months of April to November, every company that falls under the winter holiday provision must pay a daily supplement which is calculated as follows:
(CA wage + 20 %) x 1,2
The factor required for the calculation (current factor: 1.2) is set by decree by the Federal Ministry of Labour, Social Affairs, Health and Consumer Protection.
Interim supplement paid to unemployed construction workers prior to retirement
For each employee, the employer pays BUAK a supplement to wages for each week of employment excluding holiday periods in order to finance the cost of the interim supplement paid to unemployed construction workers prior to retirement (including the proportionate administrative costs).
CA wage x 1,5
Bad weather compensation (BWC) financing
The employee and company each pay 0.7% of the employee’s earnings (no more than 0.7% of the maximum assessment base) to the regional health insurance fund.
The regional health insurance fund forwards this amount to BUAK. If a budget surplus or budget shortfall results, the bad weather compensation contribution is modified by an appropriate regulation of BMASGK. For the years 2007 to 2016, BUAK instead receives a yearly contribution from the employment market policy budget.