Foundational

Company Social Benefit Fund

What is a Company Social Benefit Fund?

A Company Social Benefit Fund is a mandatory provision of funds to finance social activities and company social facilities. Social activities may mean:

• forms of leisure, cultural, and educational activities;
• sports and recreational activities;
• childcare services, including crèches, children's clubs, daycare providers, nannies, kindergartens, and other forms of pre-school education;
• provision of material assistance, in-kind or financial; and
• repayable or non-repayable assistance for housing purposes.

Company social facilities may mean:

• holiday and recreation centres;
• rest homes;
• sanatoriums;
• allotment gardens;
• sports and leisure facilities;
• crèches, children's clubs and kindergartens; and
• facilities for cultural activities.

Key Features - how does it work?

The fund is created for all employees and their families as well as retired employees.

Each company must establish regulations for the use of the Fund. This determines how the Fund is allocated, including eligibility for disbursements. Allocations from the Social Fund are determined on the basis of the life, family, and financial situation of employees. The employer may request documentation of personal data to the extent necessary to determine eligibility. By nature, the “social” element of the fund means that employees must receive different amounts.

Employers may also conduct joint social activities using money from the fund.

Cost and Funding

The fund is created from an annual basic deduction which is calculated with reference to the average number of employees. The amount is 37.5% of the average monthly salary in Poland in the previous year per employee, with some specific deductions. The contribution amount is announced by the government each year.

The contributions are borne by the employer as part of their operating costs. The amounts should be transferred into a separate bank account. Any costs that are unused in a calendar year are carried forward.

Taxation

The value of benefits in kind received by an employee from the fund is income tax exempt up to PLN 1,000 per employee per year. All benefits, regardless of their value or type, are excluded from ZUS contributions.

Implementation and Administration

All employers with at least 50 full-time employees (or equivalent) are required to establish a Social Fund.

Employers with more than 20 and less than 50 employees can establish a Fund at the request of a company trade union. Employers with fewer than 50 employees may choose to create a fund or pay a holiday allowance. If they opt not to establish a fund, they must inform employees in the January of each year.

The administration of a Social Fund includes receiving requests and making decisions on disbursements. This normally requires dedicated staff members to ensure proper record keeping.

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Income Protection & Disability

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Key Features – How Does It Work?

In Poland, income protection is provided by the government. Employers contribute 6.5% of an employee’s salary with a further 1.5% paid by the employee for a total of 8% contribution for disability pension insurance. If a person becomes unable to work, they will be entitled to and receive payments from the ZUS.

On the private market, employers may choose to fund group income protection insurance for their employees. This would provide payments additional to the ZUS entitlement if an employee became unable to work. In this case, when an employee becomes ill or suffers an injury, the cover provides them with a portion of their salary for the period they are unable to work. The cover usually begins following a predetermined “deferred period”, which can range from a few weeks to several months, and continues until the employee is able to return to work, reaches the policy’s maximum benefit term, or retires. The insurance provider may also offer rehabilitation and support services to help the employee return to work sooner.

Cost and Funding

The employer is responsible for collecting and remitting the compulsory ZUS contributions.

For private plans, premiums are normally paid monthly. The cost will depend on the size and risk profile of the workforce, the level of cover chosen, and the length of the deferred period.

Taxation

The contribution made by the employer would be considered a benefit in kind and be subject to tax and ZUS contributions. The contribution made by the employee is made from net pay. The saving that is made by the employee by being part of a group insurance policy is not included in the calculation.

For employees that have a benefit paid out, whether through the ZUS or through a private plan, this will be taxed like a regular salary.

Implementation and Administration

To implement income protection insurance, employers should select an insurance provider and agree on policy terms, including the level of coverage and deferred period. For this purpose, it may be useful to engage a broker.

Employers should communicate with their employees the option for joining the insurance and how the premiums are funded. There should be an internal process for managing enrolment and communicating with the insurer.

Regular reviews and employee feedback help ensure the coverage meets the changing needs of the workforce.

Other Considerations

Employers should consider how private income protection insurance integrates with the ZUS system, as well as other employee benefits such as private health insurance and Employee Assistance Programmes upon returning to work.

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Life Insurance

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Key Features – How Does It Work?

In the event of an employee’s death, the policy provides a lump sum benefit to the designated beneficiaries. In Poland, this amount is normally an agreed fixed sum. Some employers may extend this coverage to family members of employees.

Cost and Funding

A group policy is organised by the employer, who is responsible for paying the premiums. This is normally done monthly. Some employers will cover the entire cost of the premium while others will split the cost between employee and employer, on an opt-in basis. The cost of life insurance depends on the size and risk profile of the workforce and the level of cover chosen. As life insurance policies cover entire groups of employees, the cost per person is usually lower than individual income protection policies.

Taxation

Employer-paid premiums for life insurance are considered a benefit in kind and are subject to personal income tax. They will be excluded from ZUS contributions if they satisfy the conditions of the Detailed Rules for Determining the Basis for Calculating Contributions. If the employee contributes to the premium, this is typically taken from their net (post-tax) income. The savings employees receive from participating in a group insurance policy (e.g., lower premiums) are not considered a taxable benefit.

When a claim is paid out, the payout is typically tax-free for beneficiaries, as the premiums were already taxed when paid by the employer.

Implementation and Administration

Implementing a life insurance policy requires selecting an insurance provider and agreeing on policy terms, including the level of coverage. Once set up, HR or payroll within a company typically manage enrolment and communication with the insurer. Most companies will require their employees to complete and sign a declaration of participation document (deklaracja uczestnictwa). Ongoing administration is then managed through payroll processes.

Claims are processed and paid directly by the insurer.

Other Considerations

When leaving a company, an employee will lose their insurance coverage. Employees should be made aware of this limitation.

If the employer does not provide life insurance, they are required to pay a death benefit in the event of an employee’s death. The amount of the benefit is mandated by law and commensurate with the tenure of the employee.

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Private Health Insurance

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Key Features – How Does It Work?

In Poland, private health insurance allows individuals to receive medical treatment outside of the public health system (Narodowy Fundusz Zdrowia (NFZ)). The NFZ has faced some criticism for long waiting times and low quality of care. Private health insurance is an attractive benefit which can fill this gap.

There are two types of private health insurance in Poland. Medical subscriptions are contracts directly with providers that offer care and support within their own hospitals and facilities. Private health insurance is a financial services contract with a provider that reimburses costs for accessing a network of healthcare providers. The scope and coverage of these policies vary, and they may function either on a reimbursement basis or a direct coverage basis.

In Poland, all employees are statutorily required to make a 9% contribution to the NFZ. This is collected by employers as part of other ZUS contributions made through payroll. These contributions allow citizens to access the public health system free of charge.

Cost and Funding

The employer is responsible for collecting and remitting the compulsory NFZ contributions. This is done as part of the ZUS collection and is then transferred between the agencies.

A group policy is organised by the employer, who is responsible for paying the premiums. This is normally done monthly. Employers will typically cover the entire cost of the premium, with options for the employee to increase coverage or add dependants. The cost of private health insurance depends on the size and risk profile of the workforce, the level of cover chosen, and whether dependants are included in the policy. As health insurance policies cover entire groups of employees, the cost per person is usually lower than individual policies.

Taxation

Employer-paid premiums are treated as a benefit in kind and are subject to personal income tax and ZUS contributions. If the employee contributes to the premium, this is typically taken from their net (post-tax) income.

Implementation and Administration

Implementing a private health insurance policy requires selecting an insurance provider and agreeing on policy terms, including the level of coverage. Once set up, HR or payroll within a company typically manage enrolment and communication with the insurer. Most companies will require their employees to complete and sign a declaration of participation document (deklaracja uczestnictwa).

Claims are processed and paid directly by the insurer or subscription provider. Most providers will have an online portal where employees can submit claims, track their coverage, and access information about health care providers.

Other Considerations

Employers should consider how health insurance integrates with other employee benefits, such as group income protection and wellness programmes. It is important to communicate the details of the policy to employees, including what is covered and any exclusions. Employers should also consider whether to offer optional add-ons, such as dental or mental health cover, which could further enhance the benefits package.

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Retirement Funds

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Key Features – How Does It Work?

Poland has several different public and private options. There is a state old-age pension scheme which is funded through compulsory ZUS contributions. Employees and employers are required to contribute 9.76% each, for a total of 19.52%. When a person reaches retirement age, they will be entitled to receive payments from ZUS commensurate with their contributions.

The main private option is the Employee Capital Plan (Pracownicze Plany Kapitałowe (PPK)). This was introduced in 2019 and is now compulsory for all employers (with limited exceptions). Employees are automatically enrolled, with a choice to opt-out if they do not want to participate. Contributions are made from three sources: the government (250 PLN welcome payment, and an additional 240 PLN per year); the employer (mandatory basic contribution of 1.5% which can be increased to 4% voluntary payments); and the employee (mandatory basic contribution of 2% which can be increased to 4% voluntary payments). The manager of the fund is chosen by the employer. The employee must use the fund chosen by the employer.

PPK funds are available to withdraw at any time. If they are withdrawn before retirement age, they will be subject to additional taxes and charges. There are also provisions to withdraw the funds in the event of a serious illness or to contribute towards a mortgage for the purchase of property.

Employee Pension Schemes (Pracownicze Programy Emerytalne (PPE)) predate PPKs as voluntary employer-provided accounts. Where employers offer a PPE with a contribution rate of at least 3.5% and participation of at least 25%, they are exempt from establishing a PPK. Employers are responsible for setting up and administering a PPE and can choose how it is financed. The contributions are normally fully financed by the employer (with a cap of 7%). Tax is collected on the contributed amounts but there is no capital gains tax on withdrawal of funds. These tend to be common in larger companies.

An Individual Retirement Account (Indywidualne Konto Emerytalne (IKE)) is an individual savings account, set up and maintained by individuals. Contributions are made directly to the fund. Withdrawals are exempt from capital gains tax. Similarly, an Individual Pension Security Account (Indywidualne Konto Zabezpieczenia Emerytalnego (IKZE)) is an individual savings account with different tax benefits. These two funds are private and separate from employee benefits.

Cost and Funding

Both the employee and employer can opt to contribute above the statutory amount, with a combined total of between 3.5% and 8%. The cost of a pension scheme will depend on how much each party chooses to contribute. PPKs are subject to management fees which are capped by legislation. These fees are normally deducted directly from the fund.

Taxation

While the employee’s contribution amount is calculated based on gross salary, it is deducted from net pay, meaning the contributions have been subject to tax. Employers are not required to pay ZUS contributions on their contribution amount.

The tax on withdrawals depends on the timing and amount. If withdrawn before retirement age, the amounts are subject to capital gains tax and other deductions. If withdrawn after the age of 60, and at least 75% of the amount is taken in instalments (with the remaining 25% as an upfront payment), this withdrawal is tax-exempt. Any withdrawal taken in fewer than 120 instalments (the equivalent to monthly instalments over 10 years) is subject to capital gains tax.

Implementation and Administration

Implementing a PPK involves selecting a provider and setting contribution amounts. Once set up, HR or payroll within a company typically manage enrolment and internal communication. This includes auto-enrolling all new employees and managing the opt-out process.

All employees under 55 should be auto enrolled in the PPK, while employees over the age of 55 must apply to be enrolled. Employees who do not wish to participate in the PPK must submit a declaration document to their employer. Similarly, if an employee wishes to increase or decrease their contribution, they should submit a declaration document. Employers should make these documents readily available to facilitate ease of use.

While the PPK can be accessed at any time, the tax incentives to use it as a pension fund make it most advantageous to access after turning 60. For the ZUS old-age pension, this can be accessed at the State retirement age, which is currently 60 for women and 65 for men.

Other Considerations

The auto-enrolment required by legislation occurs every four years. This interval is general to businesses, rather than being specific to an employee’s start date. The next auto-enrolment will be in 2027, followed by 2031.

When an employee leaves a company, they can choose to keep the funds in the PPK or transfer it to the account established by their new company.

Family

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‍Childcare Support

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Key Features – How Does It Work?

Under the government’s Active Parent programme, the government provides a nursery benefit of up to PLN 1,500 per month per child for parents that are working and send their children to care facilities (not exceeding the actual childcare costs). This benefit is available to all children up to 3 years of age (when they begin attending school). Employees with children also receive childcare leave, force majeure leave, and rights to request flexible working arrangements, all designed to support work-life balance of caregivers.

Employers may choose to allocate funding from the Social Fund for childcare-related expenses. This funding may be disbursed directly to employees for childcare that is provided in nurseries, children’s clubs, kindergartens, by a nanny, or any other form of pre-school education. Alternatively, funds may be directed to a company-run childcare facility.

Cost and Funding

Most childcare support offered by employers is financed through the compulsory Social Fund. The amounts and process for allocating funds is governed by the Social Fund regulations which are established as part of running the fund.

For on-site nurseries, the employer is responsible for the setup and maintenance costs. Although these expenses can be funded through the Social Fund, they may limit the budget available for other social activities in that year.

Taxation

Childcare and nursery benefits that employees receive through the Social Fund are exempt from income tax. If such benefits are provided directly by the employer outside of the Social Fund, they are tax exempt up to PLN 1,000.

Implementation and Administration

There are strict rules that govern the operation of childcare facilities, including the size of spaces, qualifications of workers, and ratio of carers. Employers that choose to offer a childcare facility on-site must comply with these standards.

Other Considerations

Employers should consider the size and needs of their workforce when deciding the best childcare support scheme. On-site facilities require significant investment and ongoing resources, which may not be feasible for smaller companies.

Employers should provide clear guidance on who is eligible for support under the Social Fund.

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Emergency Carer's Support

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Key Features – How Does It Work?

In Poland, the government provides some back-up care support. All employees are entitled to five days of carers leave per year. This is normally unpaid, although some employers may choose to offer it as paid leave. Employees are also entitled to force majeure leave for urgent and unexpected family matters. This is designed for emergencies and does not cover ordinary illness.

On the private market, back-up care involves partnering with a care provider or offering reimbursement for care services. In Poland, emergency backup care tends to be limited to childcare services rather than support for adult care.

Cost and Funding

The cost of back-up care depends on the type of support the employer chooses to offer. Employers may fully cover the cost of certain services, offer partial subsidies, or organise discounts through partnerships with organisations. Services related to care of children can be financed through the Social Fund, provided this is included in internal regulations.

Taxation

Benefits that employees receive through the Social Fund are exempt from income tax. If such benefits are provided directly by the employer outside of the Social Fund, they are tax exempt up to PLN 1,000.

Implementation and Administration

To implement back-up care, employers should partner with caregiving service providers and provide clear guidance on how they operate.

If operating with subsidies, the employer should ensure the requirements are covered in internal regulations on the Social Fund, including clear eligibility rules.

Other Considerations

Employers should consider the size and needs of their workforce when designing an emergency carer’s support programme, and ensure that the support services offered are high-quality, safe, and flexible enough to accommodate individual caregiving needs.

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Pet Insurance

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Key Features – How Does It Work?

Employers partner with an insurance provider that offers pet insurance. Employees can choose a level of cover that suits their needs, and premiums are deducted from the employees salary, after-tax. Claims are managed and processed directly with the insurance company.

Cost and Funding

The cost of pet insurance can vary depending on the level of coverage and the number of employees participating in the scheme. Employers can fully fund pet insurance, share the cost with employees, or offer it as a voluntary benefit where employees cover the cost of premiums. Group policies often provide better rates than individual plans, making it a cost-effective way for employees to secure insurance for their pets at a discounted rate.

Taxation

Pet insurance premiums would be subject to income tax. If employee-paid, the premium should be deducted from payroll after tax. If employer-paid, this should be listed as a benefit in kind.

Implementation and Administration

Implementing pet insurance involves partnering with a pet insurance provider that offers group policies. HR teams should handle the initial communication and enrolment, ensuring employees understand the coverage options and how to sign up. Many pet insurance providers offer online platforms where employees can manage their policies, submit claims, and track reimbursements, making administration straightforward for both employers and employees.

Other Considerations

When offering pet insurance, employers should ensure that the policy covers a broad range of pets. Given the growing popularity of pet-related benefits, clear communication about coverage details, exclusions, and the claims process is crucial to helping employees make informed decisions.

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Spouse & Partner Life Insurance

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Key Features – How Does It Work?

Spouse and partner life insurance allows employees to either add their spouse or partner to their existing life insurance plan or take out a separate policy. The policy pays out in the event of the spouse’s death, helping with expenses like funeral costs, outstanding debts, or living expenses.

Cost and Funding

The cost of a spouse and partner life insurance plan depends on factors such as the coverage amount and the age and health of the spouse. Employers can choose to fully fund the insurance, share the cost with employees, or offer it as a voluntary benefit with employees covering the cost of premiums themselves. Group life insurance policies for spouses are generally more affordable than individual policies, allowing employers to offer competitive rates.

Taxation

Life insurance policies for spouses and partners are treated in the same way as for the employee. This means that the amount of the premiums that are paid on behalf of the employee by the employer will be taxable as income.

When a claim is paid out, the payout is typically tax-free for beneficiaries, as the premiums were already taxed when paid by the employer.

Implementation and Administration

Offering spouse and partner life insurance is an addition to offering life insurance policies for employees. Employers should choose an insurance provider that offers group life insurance options that extend to family members. HR teams would be responsible for communicating the availability of the benefit to employees and managing the enrolment process. Employees can add their spouse during open enrolment or at the time of hire, and coverage is usually activated once premiums begin. Many providers offer online portals for managing coverage and claims, streamlining administration for employers.

Other Considerations

Employers should clearly communicate the terms and conditions of the life insurance policy, particularly regarding eligibility, coverage limits, and exclusions. It is also important to offer flexibility, allowing employees to adjust or upgrade their coverage as their circumstances change. Regular reminders about the availability of the benefit, especially during life events like marriage, can help increase participation and employee engagement with the programme.

When leaving a company, an employee's spouse or partner will lose their insurance coverage. Employees should be made aware of this limitation.

‍Finance

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13th Month Pay

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Key Features – How Does It Work?

Employees receive an additional payment equivalent to 8.5% (1/12th) of the total remuneration they received throughout the calendar year. Employees who have worked for more than 6 months but less than 12 months are entitled to a pro-rata payment. In the public sector, this must be paid by March of the following year.

Cost and Funding

As the 13th Month policy tends to apply across a whole organisation, there is a significant cost when making the payments. Payroll managers should budget accordingly.

Taxation

The amount paid is considered similarly to any other income and is subject to income tax. This payment is also subject to ZUS contributions.

Implementation and Administration

There is no obstacle to the private sector choosing to introduce the equivalent payment as an employee benefit. Employers should establish an additional payroll cycle at a convenient time, ideally between December and March.

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Earned Wage Access

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Key Features – How Does It Work?

An employee can request an advance payment of their wages, either through an online earned wage access platform or directly via payroll. The request must not exceed the amount already earned within that calendar month and employers may choose to enforce an internal maximum. Internal HR or payroll is responsible for approving the request according to company guidelines. Once approved, the payment is disbursed to the employee in the same manner as their regular salary payment, and an equivalent amount is then deducted from the employee’s next salary payment.

Cost and Funding

The cost of offering earned wage access schemes depends on the platform used. This cost can either be covered by the employer as an ongoing administrative expense or passed onto the employee as a minimal fixed fee per disbursement. Because the disbursed amount is from wages already earned, there are no interest charges or similar fees. If the benefit is offered directly through internal payroll, the cost will be minimal.

Taxation

Earned wage access is treated like any other pay and will be taxed accordingly. Payments will be made as a net amount after income tax and ZUS contributions are deducted.

Implementation and Administration

To implement earned wage access as an employee benefit, employers can partner with a provider platform. Employees should be directed to sign up directly with the platform, which then manages requests and disbursements. If managing this benefit internally, employers should establish a clear process for submitting and approving payment requests. Employers should emphasise the voluntary nature of this benefit and ensure that employees understand how accessing earned wage access may affect their regular pay cycle.

Other Considerations

To maximise the benefits of earned wage access and help employees make informed financial decisions, employers can provide complementary resources such as financial coaching, budgeting tools, or workshops on money management. These resources should include guidance on accessing wages in a responsible way.

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Financial Advice & Coaching

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Key Features – How Does It Work?

Financial coaching may include one-on-one sessions with a professional financial coach or advisor who offers personalised advice on the employee's financial situation, or more general workshops, webinars, or digital tools that provide education on topics such as managing debt, saving for the future, investing, or creating a financial plan. These sessions can be delivered in person, virtually, or through self-guided online resources, depending on the programme.

Cost and Funding

The cost of financial coaching will vary depending on the type of service provided. Digital tools may provide a cost-effective way to provide support at scale, while personalised one-on-one coaching will be more expensive. Employers can choose to fully fund financial coaching, share the cost with employees, or offer it as a voluntary benefit with employees covering the cost of premiums themselves.

Taxation

The cost of any personal sessions of financial coaching would be subject to income tax. If employee-paid, the premium should be deducted from payroll after tax. If employer-paid, this should be listed as a benefit in kind.

Implementation and Administration

Implementing a financial coaching programme typically involves partnering with a financial advisory firm or a platform specialising in employee financial wellness. HR teams tend to handle the administration, including communication about how to access services, scheduling one-on-one sessions, or organising workshops. Digital tools and platforms based on a subscription model allow employees to book appointments or access resources at their convenience.

Other Considerations

Some Employee Assistance Programmes include financial wellness advice and employers should be aware how financial coaching integrates into their broader wellbeing strategy. Ensuring confidentiality is crucial, as employees may hesitate to seek financial advice if they fear their personal financial information could be shared with their employer.

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Personal Accident Cover

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Key Features – How Does It Work?

Personal accident insurance (Następstwa Nieszczęśliwych Wypadkówis (NNW)) typically covers an employee in the event of serious injury, disability, or death caused by an accident. When an employee suffers an accident, the policy pays an amount based on the severity of the injury. These policies may also cover medical expenses and rehabilitation costs. Coverage usually extends beyond workplace accidents, offering protection for accidents that occur outside of work, such as during commuting or leisure activities.

Cost and Funding

The cost of personal accident insurance will vary depending on the level of coverage and the number of employees included in the policy. Employers can choose to fully fund the insurance, share the cost with employees, or offer it as a voluntary benefit with employees covering the cost of premiums themselves. Group policies tend to be more cost-effective than individual plans, allowing employers to offer robust coverage at relatively low costs.

Taxation

Employer-paid premiums are treated as a benefit in kind and are subject to personal income tax and ZUS contributions. If the employee contributes to the premium, this is typically taken from their net (post-tax) income.

Implementation and Administration

Implementing a NNW policy requires selecting an insurance provider and agreeing on policy terms, including the level of coverage. Once set up, HR or payroll within a company typically manage enrolment and communication with the insurer. Most companies will require their employees to complete and sign a declaration of participation document (deklaracja uczestnictwa). Ongoing administration is then managed through payroll processes.

Other Considerations

Employers should ensure that the policy offers comprehensive coverage, including accidents that occur outside of work, to meet workforce needs. It is important to clearly communicate the terms and conditions of the policy, including any exclusions or limitations, so employees understand how the benefit works.

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Workplace Loans

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Key Features – How Does It Work?

In Poland, these loans can come from two sources: the Social Fund, or an Assistance and Loan Fund (Kasy Zapomogowo-Pożyczkowej (KZP)).

Under the Social Fund, employers can only offer loans for housing purposes. A company’s internal regulations will determine the rules for these loans, including requirements such as length of tenure or minimum salary. If employers wish to offer employee loans for other reasons, this must be done from other resources.

A KZP is an association that exists within a company, run by a company trade union or works council. Employers provide some administrative assistance, including payroll deductions for entry and membership fees, and loan instalments. Loans offered under a KZP have a broader scope compared to those from the Social Fund.

A KZP can be established in any company where at least 10 people declare their readiness to join. Members must pay an entry fee and monthly membership fees. This membership  gives participants the right to take out loans and apply for assistance. The fee amounts, loan eligibility and amounts, and other rules are set by internal regulations. There will normally be rules on membership tenure before receiving a loan.

In both cases, the loan is linked directly to payroll, with repayments deducted automatically from the employee’s net salary each pay day.

Cost and Funding

Under both the Social Fund and a KZP, the funds provided for loans are already allocated and should not incur additional costs to the employer. As there is an upfront outlay to fund the loan, administrators should be aware of how it affects the balance sheet, including the timeline for eventual repayment.

Taxation

If loans are equally available to all employees, they are not considered a benefit and will not be subject to income tax. If, at any point, the employer chooses to forgive or write off the loan, this would then be considered income and subject to tax and ZUS contributions.

Employee loan repayments deducted from payroll should be taken after tax.

Implementation and Administration

Both the Social Fund and a KZP must have internal regulations. This will govern the process for loan eligibility, application, and repayment. Payroll teams typically handle the administration of loans by facilitating payroll deductions.

Other Considerations

It is important to provide employees with clear and transparent information about how repayment works, including any potential impact on their regular pay cycle. Employers should emphasise that participation is voluntary and loans should be taken out responsibly.

Loan agreements should outline a clear repayment process for employees who leave their job before fully repaying the loan.

‍Health

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Cancer Screening

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Key Features – How Does It Work?

Cancer screening includes tests or procedures to detect the presence of cancer. This may include blood tests, mammograms, pap smears, colonoscopies, or prostate-specific antigen (PSA) tests. Screenings can be conducted by health professionals at designated medical clinics, at employer-organised mobile clinics at the workplace, or via at-home test kits.

In Poland, cancer screening may be covered under the public health system as well as private health insurance. In the workplace, it may also be complemented by workshops on prevention.

Cost and Funding

The cost of cancer screening depends on the form of the benefit. If included via private health insurance, this may increase the premium per employee. Alternatively, employers may opt to fund on-site screenings as a one-off (or annual) expense, or arrange workshops with external experts which are typically more cost-effective.

Taxation

Benefits that are paid for by the employer will be treated as a benefit in kind and are subject to personal income tax and ZUS contributions. If the employee contributes to any cancer screening benefit, this is typically taken from their net (post-tax) income.

Implementation and Administration

Implementing cancer screening will flow from what the employer chooses to offer. If it is available through private health insurance, employers should communicate the offering to employees. For one-off workshops or clinics, this can be organised and managed by HR teams, including communication and sign-ups.

Other Considerations

When offering cancer screening, it is important for employers to consider the diverse needs of their workforce. Tailoring screening programmes to cover multiple types of cancer can ensure a comprehensive approach to employee health. Employers should reassure employees about the confidentiality of their health data and emphasise that any results will not impact their employment status.

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Dental Insurance

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Key Features – How Does It Work?

Dental insurance is typically added to private health insurance or medical subscriptions, rather than being purchased separately. Coverage follows the same rules as the primary insurance, including covered services, waiting periods, and payment or reimbursement procedures.

Basic dental is covered under the public system for those eligible.

Cost and Funding

The cost of dental insurance varies depending on the level of coverage and the number of employees included in the policy. Employers can choose to fully fund dental insurance, share the cost with employees, or offer it as a voluntary benefit with employees covering the cost of premiums themselves.

Taxation

The tax treatment will align with rules for private health insurance premiums. Employer-paid premiums are treated as a benefit in kind and are subject to personal income tax and ZUS contributions. If the employee contributes to the premium, this is typically taken from their net (post-tax) income.

Implementation and Administration

As dental insurance is treated as an add-on policy, employers should consider its inclusion as part of purchasing a private health insurance policy. Once set up, HR or payroll within a company typically manage enrolment and communication with the insurer.

Other Considerations

When offering dental insurance, employers should assess the specific needs of their workforce, such as coverage for dependants, and whether the plan includes access to a wide network of dentists. It is important to communicate the details of the policy to employees, including what is covered and any exclusions or limits.

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Fitness Memberships

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Key Features – How Does It Work?

A fitness membership can take various forms, including fully paid memberships, discounted rates at specific gyms, or reimbursement for fitness-related expenses. In Poland, the most common offering is a sports card. These cards allow employees access to various gyms and fitness classes within their local area.

Cost and Funding

Employers typically finance sports cards through the mandatory Social Fund. The amounts and process for allocating funds is governed by the Social Fund regulations which are established as part of running the fund.

Employers can generally negotiate a group discount rate for these benefits.

Taxation

Fitness memberships funded through the Social Fund are exempt from income tax, up to a total of PLN 1,000 per employee per year. If the benefit is provided directly by the employer outside of the Social Fund, this is treated as a benefit in kind and is subject to personal income tax and ZUS contributions.

Implementation and Administration

Implementing a fitness membership benefit involves partnering with a sports card provider fitness providers. Employers should communicate the available options to employees and manage sign-ups. Administration is often managed via an online portal or app where employees can access these benefits, including booking classes.

Other Considerations

Many sports cards platforms now include additional features, such as discounts or integration with related services. Employers should consider the whole package when choosing a provider.

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Health Screening

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Key Features – How Does It Work?

Private health screenings usually involve a combination of physical examinations, diagnostic tests, and lifestyle consultations. Employees visit a private clinic or health facility where qualified professionals conduct assessments. The process ranges from basic checks to more comprehensive screenings, depending on the level of assessment offered. The assessment concludes with a detailed health report which includes personalised recommendations for maintaining and improving a healthy lifestyle.

In Poland, all employees must undergo a health assessment before starting a new job. Depending on the position, employees may also be subject to periodic check-ups. These tests are at the employer’s expense and should be completed within working hours with appropriate leave allowances.

Cost and Funding

The cost of health screenings varies depending on the scope of the services offered and whether they are covered under private health insurance or medical subscriptions. Negotiating a group plan is more cost-effective than an individual purchase.

Taxation

Employer-paid assessments are treated as a benefit in kind and are subject to personal income tax and ZUS contributions. If the employee contributes, any amount is typically taken from their net (post-tax) income.

Implementation and Administration

Implementing health screenings involves selecting a provider, scheduling appointments, and communicating with the offering to employees. Administration is often handled directly by the provider, who manages bookings, conducts the assessments, and delivers health reports directly to employees. Employers should ensure that the process is confidential, seamless, and accessible to all employees.

Other Considerations

Regular health assessments (e.g., annually) are more beneficial than one-off screenings, as they allow employees to track their health over time and make adjustments where needed. Employers should ensure that employees understand the confidentiality of their health data and emphasise that results will not impact their employment status.

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Mental Health Support

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Key Features – How Does It Work?

Mental health support includes a range of services that are targeted towards mental wellbeing. This may include counselling sessions, workshops, or self-help resources. This benefit is most commonly offered through private online platforms and apps.

Cost and Funding

The cost of mental health support can vary depending on the level of service provided. Comprehensive mental health support, such as counselling sessions or in-person workshops, may incur high costs, while digital mental health platforms working on a subscription model offer a cost-effective way to provide support at scale.

Taxation

How mental health support is taxed depends on what is offered. If the offering is sufficiently generic, is offered to all employees and cannot be individually assigned or quantified, it would not be considered income and therefore is not subject to tax and ZUS contributions. This is likely the case for workshops which are offered to all employees and digital subscriptions. More specific offerings, like counselling sessions, will likely be treated as a benefit in kind and are subject to personal income tax and ZUS contributions. If the employee contributes to any mental health benefit, this is typically taken from their net (post-tax) income.

Implementation and Administration

Implementing mental health support involves partnering with a provider. Employers should communicate the available options to employees and manage sign-ups. Administration is often managed via an online portal or app where employees can access these benefits at all times. Employers should aim to periodically schedule company-wide in-person workshops and training sessions to complement individualised benefits.

Other Considerations

Employers should ensure that mental health support is inclusive and accessible to all employees, regardless of their role or location. Building a mental health-friendly workplace culture is essential for the success of these benefits. This includes training managers to recognise signs of mental health challenges and encouraging open conversations about mental health. It is also important to ensure employees understand the confidentiality of their data.

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Optical Care

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Key Features – How Does It Work?

Optical care is typically added to private health insurance or medical subscriptions, rather than being purchased separately. Coverage follows the same rules as the primary insurance, including covered services, waiting periods, and payment or reimbursement procedures.

Basic optical care is covered under the public system for those eligible, with optometrist services added to this offering in 2024. Private health insurance and medical subscriptions provide more comprehensive services.

Employers must cover the cost of glasses if they are prescribed for use while working at a screen monitor.

Cost and Funding

The cost of optical care varies depending on the level of coverage and the number of employees included in the policy. Employers can choose to fully fund the insurance, share the cost with employees, or offer it as a voluntary benefit with employees covering the cost of premiums themselves.

Taxation

The tax treatment will align with rules for private health insurance premiums. Employer-paid premiums are treated as a benefit in kind and are subject to personal income tax and ZUS contributions. If the employee contributes to the premium, this is typically taken from their net (post-tax) income.

Implementation and Administration

As optical care is treated as an add-on policy, employers should consider its inclusion as part of purchasing a private health insurance policy. Once set up, HR or payroll within a company typically manage enrolment and communication with the insurer.

Other Considerations

Employers must comply with health and safety regulations on screen monitors. This includes safety set-ups, preventive health care, and covering the costs of eyewear for screens.

When offering optical care, employers should assess the specific needs of their workforce, such as coverage for dependants, and whether the plan includes access to a wide network. It is important to communicate the details of the policy to employees, including what is covered and any exclusions or limits.

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Seasonal Vaccinations

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Key Features – How Does It Work?

Vaccination programs can be provided on-site or through partnered healthcare providers. In many cases, they are included as part of a group health insurance policy. Employers may arrange for a nurse to visit the workplace, offering allocated time slots throughout the day for employees to sign up, making it convenient to get vaccinated without disrupting their work schedule. Alternatively, employees can receive their vaccination at a local pharmacy or health clinic, providing flexibility for those who prefer off-site options.

Cost and Funding

Vaccinations are normally included as part of group health insurance, meaning the employer incurs no additional costs. If this is not the case, they can be purchased per employee with discounts available for larger groups. If a programme is offered on-site, the employer will need to cover the cost of the nursing staff required to provide the vaccinations.

Taxation

Flu vaccinations funded by employers have a specific exemption from personal income tax. However, this does not extend to ZUS contributions, and employees are still required to contribute to social and health insurance on the amount of the vaccine.

Implementation and Administration

For on-site visits, HR should manage sign-ups, organise time slot allocation, and ensure there is sufficient space available for nursing staff to operate. For a health insurance-based system, it is the employee’s responsibility to schedule and attend the appointment at a participating location.

Other Considerations

All vaccinations should be entirely voluntary. The goal of the programme is ease of access, and this should be a focus of any sign-up process. Employers should provide comprehensive information about the vaccination, including potential side effects. Any seasonal vaccination programme should be timed appropriately to ensure maximum effectiveness.

‍Lifestyle

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Car Leasing

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Key Features – How Does It Work?

Employers sign an agreement with a subscription service which gives their employees access to the provider at group rates. Employees then choose a vehicle and sign a subscription contract directly with the provider. As employees sign a contract directly with the provider, employers can offer this benefit with minimal administrative burden. These agreements will include the period of the subscription, normally between 12 and 60 months. The subscription cost includes maintenance, insurance, and roadside assistance.

Cost and Funding

In most cases, employees finance the full cost of their car subscription. Employers may choose to subsidise this amount as an additional benefit. Monthly fees include car maintenance, insurance, and roadside assistance. The subscription contract is made directly between the employee and the provider, and payments are made to the subscription company. The cost will depend on the vehicle chosen and the subscription term.

Taxation

If the car is obtained directly through a subscription provider and used only for private purposes, payments are made after tax and carry no additional tax burden.

If an employee has access to a company car paid for by the employer and uses it for private purposes, this is considered a taxable benefit and will be subject to income tax and ZUS contributions. This is calculated at a flat rate of PLN 250 per month for electric cars and cars with engine power up to 60 kW, or PLN 400 per month for all other cars. If the car is used for part of the month, the tax is calculated daily at 1/30 of the above amounts.

Implementation and Administration

Employers should select a subscription provider and negotiate vehicle costs. They should communicate to employees the availability of the scheme and direct them to the provider to enter into agreements.

Subscription providers will undergo their own eligibility and credit assessment, and contracts will likely include mileage limits and other additional fees.

Other Considerations

Employers should monitor the use of the benefit to ensure they are negotiating appropriate subscription rates for their employees. Employers should communicate clearly that subscription agreements are made directly with a third-party provider. As these agreements are typically fixed-term, employees should be aware that they remain bound to the agreement if they leave their job before the term ends.

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Commuter Scheme

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Key Features – How Does It Work?

In Poland, employees on an employment contract are entitled to tax relief for transport-related expenses.

Employees must submit a declaration about the costs of earning income to their employer. The employer then deducts the relevant amount per month from payroll before calculating tax.

Employers may also offer to reimburse or purchase transport tickets as an additional benefit. This is managed internally.

Cost and Funding

For tax relief, there is no direct cost to the employer.

Taxation

PLN 250 per month is available for an employee who lives in the same town as their workplace, and PLN 300 per month for an employee who lives in a different town. Employees with multiple jobs may benefit from higher tax relief. This applies to income tax only, and ZUS contributions will still be owed. If transport is provided or paid for by the employer, employees are not eligible for this amount.

Implementation and Administration

Employers should remind employees to submit a declaration when they first start working. It remains valid for the duration of employment. Aside from this, there is no obligation to document the actual expenses incurred. If there are any changes to an employee’s living situation, they should submit a new declaration.

Other Considerations

Regular communication about the availability of tax relief and employer-supported commuting benefits can help maximise employee engagement. Employers should also ensure that employees understand the eligibility criteria and how these benefits interact with their tax obligations, particularly if they work multiple jobs or frequently change residences.

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Employee Assistance Programme

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Key Features – How Does It Work?

EAPs are commonly provided through third-party providers. Employers partner with providers, granting employees access to a range of services. Employees can use a helpline to speak with a qualified professional. If long-term support or counselling is needed, the employee may be referred to an appropriate external specialist. Most EAPs include an online portal with additional resources, such as self-help guides, articles, and tools to support wellbeing.

Cost and Funding

The cost of an EAP depends on the scope of services offered. More comprehensive mental health support, such as counselling sessions or workshops, may incur higher costs. Employers tend to fully fund these services as part of a broader employee health and wellness programme, with unlimited access granted to all employees.

Taxation

As an EAP is offered to all employees and the benefit cannot be individually assigned or quantified, it would not be considered income and therefore is not subject to tax and ZUS contributions.

Implementation and Administration

Implementing an EAP involves partnering with a provider and communicating how to access these benefits clearly to employees, including how to contact any support line. Administration is often managed via an online portal or app where employees can access these benefits at all times.

Other Considerations

Employers should ensure EAP support is inclusive and accessible to all employees, regardless of their role or location. Building a mental health-friendly workplace culture is essential for the success of these benefits and any EAP should be complemented by a wider mental wellbeing strategy. This includes training managers to recognise signs of mental health challenges and encouraging open conversations about mental health. It is also important to ensure employees understand the confidentiality of their data.

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Language Training

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Key Features – How Does It Work?

Employers partner with a training school. The employer is responsible for managing enrolment and sign up which is then passed along to the provider. The provider will conduct a placement test and organise a schedule that is convenient to participants. In Poland, the most common offering is English classes.

Cost and Funding

The cost of language training depends on the number of participants and format of the classes. In-person and small classes are most effective for learning but will be the most expensive option. For more cost-effective options, employers may choose to fund language learning apps or online programmes.

If training occurs outside regular working hours, employers may be required to pay overtime, adding to the overall cost.

Taxation

Language training is considered to be for the improvement of professional qualifications and is specifically exempted from income tax and ZUS contributions.

Implementation and Administration

Implementing language training involves partnering with a provider and organising employee enrolment. Once classes have begun, the administration is often managed by the provider via an online portal or app.

Employers need to decide whether to offer training in an online or in-person format, considering the needs and preferences of their workforce. Offering multiple language options and varying difficulty levels ensures the program is accessible to a broad range of employees.

Some companies may require employees to meet attendance requirements or commit to a set tenure after completing the course.

Other Considerations

Many language classes can now be tailored to learn specific business or industry vocabulary. Creating incentives for employees, such as certification upon completion or recognition programmes, can encourage participation and commitment.

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Long Service Award

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Key Features – How Does It Work?

In Poland, this is known as a jubilee award. It is mandatory for certain public sector employees and offered as an additional benefit in the private sector. The employer includes in the remuneration regulations or collective labour agreement the eligibility for a jubilee award. This is generally offered in five year increments. In some cases, the employee must first apply for the payment. It is disbursed similar to regular income.

Cost and Funding

The cost of a jubilee award depends on the company’s policies, including the frequency and amount of the award. Typically, the amount is calculated as a percentage of the monthly salary, with the amount increasing with tenure. Employers should account for these costs in their long-term payroll planning.

Taxation

Jubilee awards are subject to income tax, as they are considered part of an employee’s remuneration. They are exempt from ZUS contributions provided they are paid less than once every five years.

Implementation and Administration

The internal company regulations which govern jubilee awards should be as precise as possible, particularly regarding the calculation of service time. This includes addressing how periods of leave, such as parental or sick leave, are treated. If employees are required to apply for the award, the process should be straightforward and communicated clearly.

Other Considerations

To maximise the impact of the award as an employee benefit, it is best practice to complement the monetary payment with some form of company-wide recognition.

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Recognition Programme

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Key Features – How Does It Work?

Recognition platforms typically offer online access through a website or app where employees can share and receive recognition. Employees register using their work email, and the platform creates a shared community which includes all employees. Employees can share positive feedback about their peers, and managers and senior staff can issue bonuses through their preferred method, such as cash rewards or vouchers.

Cost and Funding

The cost of offering a recognition programme depends on the platform and the reward system. Third-party providers normally charge a per employee per month fee to use the platform, with some group pricing depending on the number of employees using the service. The cost of cash awards and vouchers will also vary depending on the employer’s budget and reward structure.

Taxation

Awards and other bonuses are considered part of an employee’s income and will be subject to tax. If an employee receives a non-cash benefit, such as a voucher, the amount will be included as income.

Implementation and Administration

Implementing a recognition programme involves partnering with a third-party provider that manages the platform and curates the social engagement and rewards. The provider typically handles most of the administration, including onboarding employees and maintaining the platform. Employers are responsible for communicating the benefit to employees and encouraging them to register and use the portal. Employers should track usage and feedback to ensure the portal is delivering value and make adjustments as necessary to keep it relevant and engaging.

Other Considerations

When implementing an online recognition programme, employers should ensure that the platform’s features appeal to a diverse workforce by supporting various types of recognition, such as peer-to-peer praise, manager feedback, and milestone celebrations. Customising the platform to reflect the company’s culture can increase employee engagement. Regularly updating the platform with new features, recognition categories, and reward options helps maintain employee interest and ensures the programme stays relevant.

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Retail Discounts

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Key Features – How Does It Work?

Employees usually register with the provider using their work email. They can then access a platform, typically through a website or mobile app, and browse available offers and make purchases directly. Discounts can range from percentage reductions to cash back deals and vouchers. Some portals also offer price comparison tools, special promotions, and personalised deals based on employees’ preferences. In Poland, this function is built into some cafeteria systems.

Cost and Funding

The cost to employers for providing access to discount portals is generally low, with many providers offering free or low-cost access to companies. In most cases, employers pay a nominal fee to the provider to manage and maintain the portal, while employees gain access to the discounts without having to pay. For larger employers, costs may be scaled based on the number of employees using the service. The savings gained by employees typically exceed the employer’s cost of offering the benefit.

Taxation

If the discount portal is offered to all employees and the benefit cannot be individually assigned or quantified, it would not be considered income and therefore is not subject to tax and ZUS contributions. It will depend, however, on the specific implementation of the benefit.

Implementation and Administration

Implementing a discount portal involves partnering with a third-party provider that manages the platform and curates the available offers. The provider typically handles most of the administration, including onboarding employees, managing discounts, and maintaining the platform. Employers are responsible for communicating the benefit to employees and encouraging them to register and use the portal. Employers should track the usage and feedback to ensure the portal is delivering value and adjust offerings as necessary to keep it relevant and appealing.

Other Considerations

When offering a discount portal, employers should ensure that the range of discounts appeals to a diverse workforce, covering various categories such as retail, travel, and entertainment. Customising the portal to include local and industry-specific discounts can increase employee engagement. Regular updates and promotions can keep employees engaged and aware of new discounts.

Leave & Remote Working Policies

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‍Additional Leave

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Additional leave includes any paid or unpaid leave that is offered by employers for non-statutory purposes. Examples include company days, mental health days, volunteer leave, and birthday leave. Employers establish their own policies for how to request and log these days.

Annual Leave

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Annual leave is paid time off work that all employees are entitled to, designed for personal activities.

In Poland, all employees are entitled to 20 days of annual leave per calendar year. This increases to 26 days after ten years of employment. The ten years is calculated as part of total working life, rather than being limited to a single employer, and includes periods of study. There are also 14 national public holidays which all employees receive, with Christmas Eve added as a public holiday for the first time in 2025.

If an employee changes jobs at some point during the year, they are issued a certificate of employment which includes information about the leave that they have taken. If they start a new role, their entitlement to leave must take this into account.

While leave can be taken in blocks, one part of the annual leave entitlement should last at least 14 consecutive calendar days. This policy is not always strictly enforced.

Unused leave is carried over into the next year. It must be used by 30 September.

Carer’s Leave

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Carer’s leave is paid or unpaid time off to provide personal care or support to a dependant.

In Poland, employees are entitled to 5 days of carer's leave, based on the EU directive on work-life balance for parents and carers. To claim this entitlement, employees must provide information about the person they will be caring for. This leave is unpaid, with no statutory requirement for payment. Some employers may choose to offer paid leave as an additional employee benefit.

Childcare Leave

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Childcare leave is paid time off to care for a child.

In Poland, employees are entitled to 2 days or 16 hours of childcare **leave. This leave is fully paid by the employer. This is available for those who have at least one child up to 14 years of age. If both parents or guardians of a child are employed, only one of them may use the leave. The leave is not tied to a particular event (such as illness) and the use is entirely at the discretion of the parent.

Compassionate & Bereavement Leave

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Compassionate and bereavement leave is time off work for personal loss or other family emergencies.

In Poland, this is covered under the Special Leave allowance (urlop okolicznościowy). An employee is entitled to 2 days for the death and funeral of a spouse, child, father, mother, stepfather or stepmother, and 1 day of special leave for the death and funeral of a sister, brother, mother-in-law, father-in-law, grandmother, grandfather or other dependant.

This leave is determined by the event and will be available each time an event occurs, regardless of the frequency within a single year.

Flexible Working

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Flexible working means finding a way of working that suits an employee’s needs. This may include having flexible start and finish times, or working from home. Some examples of flexible working include job sharing, remote working, hybrid working, part time hours, compressed hours, flexitime, or staggered hours.

Poland follows EU rules on work-life balance for parents and carers. Employees with children up to 8 years old have the right to request flexible working arrangements for caregiving purposes after six months of service.

For employees who do not fall under the caregiving category, offering and granting flexible working arrangements is at the employer's discretion.

Force Majeure Leave

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Force majeure leave is time off from work due to urgent and unexpected family matters that require an employee’s immediate attendance. This differs from other types of leave which tend to be pre-planned and -approved.

In Poland, employees are entitled to 2 days or 16 hours of force majeure leave, based on the EU directive on work-life balance for parents and carers. Employees are paid at 50% of their normal rate of pay. Some employers may choose to offer full pay as an additional employee benefit.

Long Service Leave

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Long service leave refers to extended paid or unpaid leave that is offered as a benefit for long-term employees. It may also be referred to as tenure leave or a sabbatical.

In Poland, there is no statutory entitlement to long service leave. While it is offered as an additional benefit in certain industries, such as the provision for a sabbatical in academia, it is not a widespread offering.

Maternity Leave

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Maternity leave is paid time off for mothers before and after childbirth.

In Poland, statutory maternity leave is 20 weeks for the birth of one child, with additional time for a multiple birth. Maternity leave can begin up to 6 weeks before the expected delivery date. After childbirth, a mother must take a minimum of 14 weeks before returning to work. Maternity leave can also be used in conjunction with parental leave.

Adoption leave is granted on the same terms as maternity leave, for the adoption of children up to 7 years of age.

While payment is processed by employer payroll, the maternity benefit payment is financed by ZUS, with no cost to the employer. This benefit is calculated at 100% of the allowance base, calculated as the average monthly salary paid to the employee for the period of 12 months preceding the leave. ZUS deductions for pension, disability, and sickness are applied to this benefit.

When combined with parental leave, there is also an option to apply for a payment at a rate of 81.5% of the allowance base for the combined period of maternity and parental leave.

There are additional provisions for maternity leave in cases of extended hospitalisation or in the event of the death of a child.

Paternity Leave

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Paternity leave is paid time off for fathers after childbirth.

In Poland, statutory maternity leave is 2 weeks. This can be taken all at once or in two 1-week blocks, and is available until the child turns 1. Paternity leave can also be used in conjunction with parental leave.

While payment is processed by employer payroll, the paternity benefit payment is financed by ZUS, with no cost to the employer. This benefit is calculated at 100% of the allowance base, calculated as the average monthly salary paid to the employee for the period of 12 months preceding the leave. ZUS deductions for pension, disability, and sickness are applied to this benefit.

There are additional provisions for paternity leave in cases of extended hospitalisation or in the event of the death of a child.

Employers may offer enhanced paternity leave, above the statutory requirement. This most commonly takes the form of additional leave days. Any payment is then funded by the employer.

Remote Working

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Remote working policies provide employees with the flexibility to work from locations outside of the office, typically from their own homes. While these arrangements can fall within the definition of flexible working requests, many employers have begun to offer remote working as a standard practice.

Any remote working policy is mutually agreed between the employer and employee, either when concluding an employment contract or during employment. In addition to an agreed arrangement, all employees are entitled to perform remote work for up to 24 days per year on an ad hoc basis.

If a remote working agreement has been concluded, the employer has an obligation to provide the employee with the appropriate work tools, including technical devices. They are also required to cover the costs of electricity and internet. Providing a cash equivalent is the most common method of meeting this obligation.

Parental Leave

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Parental leave is a statutory leave entitlement that is available to all new parents in addition to traditional maternity and paternity leave policies. It is a single entitlement that is designed to be shared between caregivers.

In Poland, statutory parental leave is 41 weeks, with an additional two weeks for a multiple birth. Each parent has an individual, non-transferable entitlement to 9 weeks which cannot be transferred to the other parent. The leave may be taken at the same time, with each parent’s leave deducted from the total entitlement, or in blocks.

While payment is processed by employer payroll, the parental leave benefit payment is financed by ZUS, with no cost to the employer. This benefit is calculated at 70% of the allowance base, calculated as the average monthly salary paid to the employee for the period of 12 months preceding the leave. ZUS deductions for pension, disability, and sickness are applied to this benefit.

When combined with maternity leave, there is also an option to apply for a payment at a rate of 81.5% of the allowance base for the combined period of maternity and parental leave.

Employers may offer enhanced parental leave, above the statutory requirement. This most commonly takes the form of a rounding up payment to give employees the equivalent amount to their regular pay.

Sick Leave

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Sick leave is time off for employees to recover from illness.

In Poland, employees are entitled to 33 days of paid sick leave from their employer, or 14 days for employees over 50 years of age. After this employer-paid period, employees are entitled to up to 182 days of the sickness benefit from the ZUS. Both of these amounts are paid at 80% of an employee’s regular salary, although employers may choose to pay at 100% as an additional benefit. If the illness is caused by an accident on the way to or from work or illness during pregnancy, the employee is paid at 100% of salary.

To receive sick leave payments, employees need a medical certificate issued by a doctor, commonly known as an L4 form. These certificates are now issued electronically and automatically submitted to the ZUS.

Special Leave

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Special leave is statutory leave for special occasions. This varies between countries based on social and cultural norms.

In Poland, there is a special leave provision for paid time off in the event of marriage, birth, and death (urlop okolicznościowy). If the event is related to the employee’s own wedding, birth of his or her child, or the death and funeral of a spouse, child, father, mother, stepfather or stepmother, the employee is entitled to 2 days of paid leave. If the event is related to the wedding of the employee’s child, or the death and funeral of a sister, brother, mother-in-law, father-in-law, grandmother, grandfather or other dependant, the employee is entitled to 1 day of paid leave.

This leave is determined by the event and will be available each time an event occurs, regardless of the frequency within a single year.

‍Spending Allowances

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‍Flex Allowance

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A flex allowance is a budget that allows employees to choose and spend on a range of benefits. Employees can use this allowance to tailor benefits to suit their individual needs and preferences. In some cases, the allowance is limited to specific benefits or categories within a dedicated platform. In other cases, it is linked to a virtual card, which enables the employee to access and make purchases within the general consumer market.

In Poland, many companies use the cafeteria system to offer employee benefits. The employer gives a certain amount of funds to an employee to spend as they wish, within a selection of choices that are curated on a platform. Depending on how the system is set up, this can be financed from the Social Fund.

Holiday Allowance

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Wczasy pod gruszą, literally translated as “holiday under the pear tree”, is a payment from a company’s Social Fund to help fund employee’s holidays. Whether this is available will depend on the company’s internal regulations. Since funds are disbursed from the Social Fund, the amount each employee may receive is determined by criteria based on their individual life circumstances. It is also common to have a minimum requirement of 14 consecutive calendar days of leave to receive the payment. The employee will be required to submit an application for payment. Any funds that are received from the Social Fund are in addition to the annual leave payments that an employee receives as part of their income.

Meal Allowance

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A meal allowance is a payment or subsidy for meals that are eaten at work. This may take the form of a voucher, prepaid card, or reimbursement. In Poland, any subsidy for meals provided to employees is exempt from ZUS contributions up to PLN 450 per employee per month. This amount can be used on an on-site canteen, delivered lunches, or an allowance. In the case of the latter, there must be strict regulation and accountability that it is being spent on lunch food and not other items.

There are separate rules for workers who are in roles that require high physical effort. In this case, the meal must be funded by the employer.

Social Allowance

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A social allowance is a budget to support employees’ participation in social or team-building activities. It can be used for events such as team outings, company gatherings, or community engagement initiatives. This may be allocated to individual employees or provided to management and senior staff to support group events and activities. In Poland, the equivalent of a social allowance is covered by the Social Fund.