German entrepreneur fined €5,400 for evading construction fund payments
A 55-year-old entrepreneur from Aschersleben has been fined €5,400 for defrauding SOKA-BAU, Germany’s construction industry holiday and social security fund. The Aschersleben District Court also ordered the confiscation of €14,000 in unpaid contributions. The ruling became legally binding on August 29, 2025.
The businessman, a Vietnamese national, had employed workers but failed to register them with SOKA-BAU. By avoiding registration, he withheld around €14,000 in mandatory contributions owed to the fund.
The entrepreneur must now pay both the fine and the outstanding contributions. The confiscated €14,000 will go toward covering the unpaid SOKA-BAU fees. The ruling reinforces penalties for failing to comply with construction industry payroll obligations.
