About BUAK

The Construction Workers’ Leave and Severance Pay Fund (BUAK) was founded in 1946 and is a public corporation. BUAK is managed equally by employer and employee representatives. The legal basis is the Construction Workers’ Leave and Severance Pay Act (BUAG) and the Construction Workers’ Bad Weather Compensation Act (BSchEG). BUAK has its headquarters in the 5th district of Vienna and a regional office in every provincial capital (except St. Pölten). It monitors compliance with this legislation directly on construction sites and at companies in order to ensure fair competition.


Our subsidiaries

BUAK’s company employee and self-employed pension fund (BUAK-BVK ) is wholly owned by Bauarbeiter Urlaubs- und Abfertigungskasse. It sustainably assesses severance pay and self-employed pension contributions for employees and self-employed persons in all sectors.

BUAK Schulungen GmbH offers training courses on the Construction Workers’ Leave and Severance Pay Act. The courses for master builders, payroll accountants, tax consultants and other interested parties are held by experienced BUAK employees. Employees who are posted or hired out to Austria for construction work by companies based outside Austria are also subject to the leave regulations of the Construction Workers’ Leave and Severance Pay Fund.

BUAK benefits

The regulations contained in the Construction Workers’ Leave and Severance Pay Act (BUAG) differ significantly from the general Leave Act, as the employment rhythm of construction workers is characterized by seasonal interruptions.

The vacation provisions have a company-neutral, industry-specific character. This means that the qualifying weeks required for vacation entitlement can be earned at different companies. The leave itself can also be taken at a company where the employee does not yet have any entitlement from the current employment relationship.

BUAK’s tasks include storing the data, organizing the payment of contributions by the companies, managing and investing the paid-in capital and finally paying it out to the employee.

Leave can only be taken if there is a mutual agreement between the employer and employee as well as a valid employment relationship.

If an employee takes vacation, the vacation pay is transferred to the company concerned (if an escrow account exists) or directly to the employee.
Vacation entitlements that are not taken in the form of vacation can be compensated to the employee as severance pay or vacation compensation.

The basic idea was to extend the “company neutrality” already anchored in the vacation regulations for construction workers to severance pay. This means that periods of employment at different companies are added together for the calculation of severance pay entitlement.
Since October 1, 1987, there has been a severance pay regulation in accordance with the BUAG.

Severance pay serves various socio-political purposes:

  • Provision for the threat of unemployment following termination of employment
  • Loyalty bonus for longer service
  • Share of the company’s upswing brought about by the employee’s performance
  • Bridging for the reduction in income caused by loss of employment
  • Compensation for the wear and tear on the workforce due to longer periods of employment in a particular company

The Company Employee and Self-Employed Pension Act (BMSVG) applies to employment relationships based on a contract under private law that began after December 31, 2002 and to freelance employment relationships that began after January 1, 2008.

BUAK Betriebliche Vorsorgekasse administers severance pay contributions on a fiduciary basis. Read more about the sustainable investment of BUAK BVK here.

  • If employees are not employed on the construction site over the winter holidays (24.12., 25.12., 26.12., 31.12., 01.01., 06.01.), they will receive remuneration for these days under certain conditions.

If a company is subject to the winter public holiday regulation and has one or more employees during the winter public holidays, the claim for a lump-sum refund (of the statutory public holiday pay paid to the employees) is directed against BUAK.

The refund is calculated according to the following formula:
(KV wage + 20%) x weekly hours/5 x number of winter holidays

The company is also entitled to 30.1% fringe benefits (from 01.12.2020) for the social security contributions and statutory levies to be paid during the winter holidays. The reimbursement will be offset against the current additional payment for the vacation area, i.e. the payments will be made in January and February.

Scope of application

With effect from July 1, 1996, the BUAG was extended to include the subject area of “winter holidays”. In this amendment, measures were taken to improve annual employment in the construction industry.

At present, only companies in the

  • construction and the construction industry,
  • public enterprises,
  • torrent and avalanche control companies and
  • labor leasing companies whose employees are employed in the construction industry and construction sector are included in this law.

Weather conditions are a key factor in the workflow of the construction industry.

For companies, unfavorable weather conditions result in the problem of costs for lost working hours.

For construction workers, most of whom work outdoors, bad weather means work interruptions that are associated with wage losses.

The bad weather regulation serves as a solution to these problems. This provides for the reimbursement of costs incurred to the companies on the one hand and a compensation scheme for loss of earnings that occurs when work is lost due to bad weather on the other.

If the company decides that work has to be stopped due to bad weather, employees receive 60% of their actual wages from the company for the hours lost.

The aim of the social partners in the construction industry was to offer construction workers who have worked in the construction industry for many years and who cannot remain in employment until retirement (old-age, heavy labor and corridor pension) as well as special retirement benefits in accordance with Art. X of the Night Heavy Labor Act – NSchG, Federal Law Gazette No. 354/1981, are offered early protection in the form of a bridging allowance for the period of non-employment until retirement.

If the employee has acquired sufficient periods of employment in construction, he or she can receive up to 18 times the 169.5 times the hourly wage stipulated in the collective agreement for the last 52 weeks before termination of the employment relationship as an Interim supplement to the pension entitlement.

Wage and social dumping

  • Guaranteed pay in the construction sector
    On May 1, 2011, the restrictions on the freedom of movement of workers and services ended for the EU member states of Estonia, Latvia, Lithuania, Poland, Slovakia, Slovenia, the Czech Republic and Hungary. Since then, companies from the above-mentioned member states have been able to enter the Austrian market with their workers without any barriers. At the same time, the Wage and Social Dumping Act (LSDB-G) came into force. The aim of the law is to avoid undermining the minimum wages set by collective agreements in Austria and thus to guarantee the Austrian wage level for employees working in Austria. Since 01.01.2014, the EU member states Bulgaria and Romania have also enjoyed full freedom of movement for workers and services.
    According to the LSDB-G, however, domestic and foreign employers must generally pay employees working in Austria the remuneration to which they are entitled under Austrian law, regulation or collective agreement, taking into account the respective classification criteria, with the exception of the remuneration components listed in § 49 Para. 3 ASVG.

    BUAK is the supervisory body in the construction industry. BUAK takes this task very seriously and carries out inspections on construction sites and in domestic payroll offices. The inspection competence includes both domestic and foreign employees who are subject to BUAG.

Information on suspected underpayment to BUAK

If you are employed in the construction industry and suspect that you have been underpaid, you can use the following folder to send us the key data of the employment relationship for verification.

Of course you can also visit BUAK’s customer service department in person. Please take the available documents relating to your employment relationship (employment contract/service record) and your remuneration (working time records, payslips/wage documents, payment confirmations/bank transfer receipts) with you to your appointment.

You can also send us your information anonymously by e-mail to anonymer-posteingang-sbb@buak.at.
Your submission data will be automatically anonymized and forwarded to the appropriate person.

Have you got any questions?

General questions

We will respond to your request as quickly as possible.

Native language advice

Give us a call. We will be happy to answer your questions over the phone.

For questions on secondment issues

Are you employed by a foreign company?

Posting to Austria

The same provisions should apply to all construction workers who work in Austria.

Workers who are employed by a construction company that is not from Austria and who work in Austria are integrated into the so-called posting procedure. These employees do not usually live and work in Austria, but are assigned or posted to Austria for construction work.

The provisions apply from the first day of work in Austria.

Posting regulations

All companies that fulfill the following requirements are subject to the posting provisions of the BUAG:

An employer

  • posts employees during a valid employment relationship
  • employees, without their usual place of work in Austria, temporarily
  • for the continued performance of work or within the scope of a labor leasing
  • for construction activities within the meaning of BUAG
  • in Austria.

In addition, employees who have their usual place of work in Austria, but are called upon by a foreign employer for work assignments in Austria, are also subject to these regulations.

To assess whether the posting provisions of the BUAG are applicable to an employee posted to Austria, the activity carried out in Austria is primarily relevant.

How does vacation entitlement arise?

The employees concerned have a mandatory entitlement to paid leave for the duration of the posting. This claim is directed against BUAK and must be asserted by the employee or company on behalf of the employee by submitting the form “Submission for leave pay claims pursuant to § 33f BUAG”.

In principle, posted employees are entitled to 25 vacation days (30 working days) when they reach 52 qualifying weeks. This increases to 30 vacation days (36 working days) after 1040 qualifying weeks.

The vacation entitlement arises in proportion to the number of qualifying weeks completed within a calendar year.

However, the entitlement only arises to the extent of the entitlements for which the employer pays the fixed supplements. You can find more information on the calculation of supplements for vacation here.

Who pays the vacation pay?

BUAK pays the (net) vacation pay directly to the employees, but only to the extent of the payments made by the company to BUAK.

Further information on the topic
you can find useful information on posting and cross-border assignments on the posting platform at http://www.entsendeplattform.at.


Further information on secondments

Employer info

Since September 1, 2005, foreign companies that post their employees to Austria/cross-border assignments or use employees with their usual place of work in Austria have been subject to the Construction Workers’ Leave and Severance Pay Act (BUAG) with regard to leave regulations.

The posting or transferring company must therefore pay leave supplements to the Construction Workers’ Leave and Severance Pay Fund (BUAK) for the duration of the posting for each employee who performs construction work within the meaning of the BUAG.

Based on the initial notifications submitted by your company (notifications according to the AVRAG – ZKO3 or AÜG – ZKO4 are also considered initial notifications according to § 33g Para. 2 BUAG) or based on other information relevant to settlement (see § 22 Para. 5 BUAG), BUAK prescribes monthly vacation supplements for the company.

Info employees

Vacation entitlement

The entitlement to vacation arises to the extent of the entitlements for which the company pays the calculated supplements to BUAK. The leave pay must be paid directly to the employee by BUAK. This applies to leave taken during the posting or within a period of six months after termination of employment in Austria if the employment relationship with the posting company is still valid.

In principle, the principle of aggregation of entitlements applies, i.e. leave entitlements already earned and not yet paid out are aggregated with the resulting new leave entitlements in the event of a new posting/cross-border transfer.

BUAK will only pay out vacation pay if this has been initiated by the company using the form “Submission of vacation pay claims pursuant to § 33f BUAG” to BUAK. This can only be submitted for leave pay for a period of leave that is no earlier than the month before and no later than the month after the submission.

Downloads Employee


ANI example_English


Information after assertion of the severance payment_English


Bank details posting procedure_English


Employee information on vacation pay for secondments_English


Employee information after rejection of leave application_English


Severance pay application declaration assistance for secondment_English


Brochure BUAK quickly explained_English

Downloads Employer


Completion assistance for submitting leave for secondments_English


eBUAK Portal_secondments_terms of use_English


Information letter on the first award settlement for secondments_English


Employer information on vacation pay secondments_English


Employer information after rejection of leave aplication_English

note: All texts were translated with the free software from DeepL.