Winter is a special time of the year that can make the daily lives of almost everyone more difficult. This also affects certain occupational groups – due to adverse weather conditions, it is not possible to carry out their professional activities effectively. These include, among others, the construction, roofing and horticultural sectors. Loss of working hours is associated with reduced pay or even a complete loss of remuneration. However, for such professions the German legal system provides for a special benefit – the winter employment levy. Who is entitled to it, and how can this levy be claimed for tax purposes? How can you obtain a tax refund from the winter employment levy in Germany? The answers are set out below.
Winter employment levy in Germany – a response to the problems of many occupational groups
In winter, snowfall and low temperatures occur, sometimes reaching double-digit minus degrees. Such weather conditions make outdoor work impossible for many companies. During severe winters, roofers, construction workers or gardeners are often unable to perform their jobs. Employees can receive compensation for the loss of earnings, such as seasonal short-time work benefits and winter supplements. In addition, the payment can be increased by the winter employment levy, which is a response to the specific problems of the construction, scaffolding, roofing, gardening and landscaping sectors.
Winter employment levy – supplement in bad weather
In Germany, the winter employment levy represents a percentage of the gross wage (usually 1–2 %) of all employees, which the employer pays on a monthly basis. The sum accumulated over the course of the year serves as a reserve to secure wage payments for all employees in weaker periods when the company generates lower turnover (e.g. in the winter months).
In 2026, a temporary reduction in the contribution rate of the winter employment levy for the main construction industry was introduced in order to ease the burden on companies and employees during the winter period.
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The regular contribution rate of 2 % of gross wages (1.2 % employer + 0.8 % employee) was reduced to 1 % for the entire year 2026 (from 1 January to 31 December). The new split is 0.6 % paid by the employer and 0.4 % by the employee; this results from the amendment to the Winter Employment Ordinance (the amendment is temporary – from 1 January 2027 the regular contribution rates are to apply again). The levy is collected by SOKA-BAU on behalf of the Federal Employment Agency; the funds are used to finance benefits aimed at securing employment in periods of bad weather, in particular in the context of seasonal short-time work benefits.
Although the winter employment levy is a relatively small contribution that is withheld over the course of the year, it should not be ignored when preparing the tax return. Employees in the construction, roofing or horticultural sectors can claim it as income-related expenses (Werbungskosten), which can have a positive effect on the outcome of the tax assessment.
Cash supplement in bad weather 2026 – who pays and in what amount?
All German construction companies that employ workers (including temporary agency workers) are obliged to pay the winter employment levy. The amount is calculated on the basis of the fixed percentage rates and the reported gross wages of the company’s employees. The temporary reduction to 1 % applies only to the main construction industry and not to all sectors covered by the winter employment levy.
The table below lists the occupational sectors subject to the winter employment levy and the respective share of employers and employees in the contribution burden.
| Sector | Responsible institution | Contribution rate in 2026 |
| Main construction industry | Holiday and Wage Compensation Fund of the Construction Industry — SOKA-BAU | 1 % of the gross wage of manual workers: 0.6 % employer + 0.4 % employee |
| Roofing trade | Wage Compensation Fund for the Roofing Trade — SOKA-DACH | 1.6 % of the gross wage: 1.0 % employer + 0.6 % employee |
| Gardening, landscaping and sports ground construction | Collection office gardening and landscaping — EWGaLa | 1.85 % of the gross wage: 1.05 % employer + 0.8 % employee |
| Scaffolding trade | Social Fund for the Scaffolding Trade — SKG / SOKA GERÜSTBAU | 1.9 % of the gross wage, financed exclusively by the employer |
| Other construction companies as direct payers | Federal Employment Agency — BA-Service-Haus, Winter Employment Levy Department | Depending on the sector: main construction industry: 1 % + 15 % flat rate on the levy; roofing trade: 1.6 % + 10 %; gardening and landscaping: 1.85 % + 10 %; scaffolding trade: 1.9 % + 10 % |
Winter employment levy in the annual tax return – tax treatment
The monthly winter levy can be claimed as income-related expenses (Werbungskosten) in the tax return. The amount of the winter employment levy can be found, among other things, on the income tax statement (Lohnsteuerbescheinigung). Once the amount has been determined, it must be entered in Annex N of the tax return.
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FAQ
Who pays the winter employment levy?
The levy is paid by the employer; in certain sectors the employee contributes through a deduction from the gross wage. The amount and distribution of the levy depend on the respective sector, such as the main construction industry, the roofing trade, horticulture or scaffolding.
Can the winter employment levy be claimed for tax purposes?
Yes, the portion of the levy withheld from the employee’s gross wage can be claimed as income-related expenses (Werbungskosten) in the German tax return. This can reduce taxable income and influence the amount of the tax refund.
Where can the amount of the winter employment levy be found?
The amount of the levy may appear on the monthly payslips or on the employer’s annual income tax statement (Lohnsteuerbescheinigung). Before preparing the tax return, the payroll documents should be checked, as they provide evidence of the amount of the levy withheld.
Where is the winter employment levy entered in the tax return?
The winter employment levy is usually entered in Annex N as an expense related to non-self-employed work. When preparing the return using tax software, the amount must be entered in the section for employees’ income-related expenses.
Is the winter employment levy identical to the seasonal short-time work benefit?
No, the winter employment levy is a contribution, whereas the seasonal short-time work benefit is a payment made in the event of weather-related work stoppages. The levy finances the support system from which employees and companies can receive benefits in times of bad weather.
How high is the winter employment levy in 2026?
In 2026, the levy in the main construction industry was temporarily reduced to 1 % of the gross wage, of which 0.6 % is borne by the employer and 0.4 % by the employee. In other sectors such as the roofing trade, horticulture or scaffolding, different contribution rates may apply.
Does the winter employment levy always lead to a higher tax refund?
Not in every case, as the impact depends on the overall assessment situation, the level of income and the other expenses stated in the return. However, it is advisable to take it into account, as it is classified as income-related expenses (Werbungskosten) and can thus improve the final tax result for Germany.
Maciej Wawrzyniak
In his private life, Maciej enjoys sporting challenges, playing the guitar, and swimming in the lake. He is also the proud father of three sons.
