Contributions / Supplements
Payment of supplements
In order to be able to pay employees’ claims, amounts known as supplements are collected for the various areas. The supplements are paid by the company or employer company of posted or hired out employees; BUAK makes its own contribution for a partial area.
The supplements help to finance BUAK’s expenditures on holiday remuneration, settlements (pursuant to § 10 BUAG), holiday compensation, additional services (pursuant to § 26 BUAG) and administrative costs. BUAK bears all costs for holiday week supplements.
BUAK’s expenditures for holiday and severance pay matters pursuant to § 13 a to § 13 h BUAG and the administrative costs in this area are financed by the payment of supplements to workers’ wages. All severance pay paid for the current year is taken from the supplements for the current year (pay-as-you-go system).
Winter holiday provision
This provision applies exclusively to companies in the main building trades and the construction industry, public companies, torrent and avalanche control companies and temporary employment companies. For each employee, the company must pay a supplement to wages during the supplement period from April to November.
§ 1 of the Bad Weather Compensation for Construction Workers Act [Bauarbeiter-Schlechtwetterentschädigungsgesetz] (BSchEG) specifies which companies are subject to the bad weather provision. Supplements in this area are not collected by BUAK; rather, the relevant amount is collected directly by the regional health insurance fund.
Interim supplement paid to unemployed construction workers prior to retirement
On 1 January 2014, a new area was created in the Construction Workers’ Annual Leave and Severance Pay Fund [Bauarbeiter-Urlaubs- und Abfertigungskasse] (BUAK) for the interim supplement paid to unemployed workers prior to retirement. For each employee, the company must pay a supplement to wages.
Click here to learn how the amount of this supplement is calculated.