Social insurance and non-wage labor cost
Last reviewed 21 Aug 2023
Social insurance
Statutory social insurance contributions: (a) retirement, (b) disability, (c) accident, (d) sickness (sickness contributions are obligatory in case of employee, otherwise - optional).
Statutory medical care contribution (health insurance) as well.
Temporary concessions with regard to social security contributions possible for individuals starting up business activity, incl. possible 6-months of contributions-free period. Concessions do not concern health insurance.
Contribution rates and maximum contributions
Self-employed persons
Health insurance
9% where taxpayer chose either: (a) progressive income taxation of business profits based on tax scale or (b) lump sum taxation of business revenues.
4.9% where taxpayer chose 19% flat-rate taxation of business profits;
Assessment basis:
(1) in case of progressive taxation or 19% flat-rate taxation of business profits - the basis is taxable income (revenues less tax deductible costs less social security contributions); health insurance contribution for a given month is calculated from income obtained in month preceding the one for which contribution is paid.
(2) in case of lump sum taxation of business revenues - the assessment basis depends on the amount of yearly revenues (less social security contributions):
(a) where yearly revenues do not exceed PLN 60,000 - the monthly basis is 60% of avarage monthly salary gross in public sector, announced for 4th quarter of the preceding year,
(b) where yearly revenues exceed PLN 60,000 but not exceed PLN 300,000 - the monthly basis is 100% of avarage monthly salary gross in public sector, announced for 4th quarter of the preceding year,
(c) where yearly revenues exceed PLN 300,000 - the monthly basis is 180% of avarage monthly salary gross in public sector, announced for 4th quarter of the preceding year.
Health insurance is:
(a) non-deductible from taxable income or tax (PIT) - in case of progressive taxation based on tax scale,
(b) deductible from revenues up to the amount of PLN 12,900 annually - in case of applying 19% flat-rate taxation of income from business activity,
(c) deductible from revenues in 50% - in case of lump sum taxation of revenues derived from business activity.
Pension insurance
retirement insurance: 19.52%
disability insurance: 8%
sickness insurance: 2.45% (contribution is optional)
Obligatory pension fund
2.45%
Accident insurance
1.67% - applies to contribution payer who registered up to 9 people for accident insurance purposes (incl. self-employed oneself);
otherwise (if more than 9 people registered) contribution rate is set individually within the range 0.67% - 3.33% depending on affiliation of contribution payer to a given group of activity, potentially multiplied by corrective factor (0.5 - 1.5) set for a given contribution payer.
Maximum contribution
Pension and disability contributions are not paid from surplus of the assessment basis (revenues) exceeding 30 times multiplied amount of avarage monthly salary gross in public sector projected for a given year; then in 2025 the cap is: 30 x PLN 8,673 = PLN 260,190
No cap for accident and sickness contributions as well as obligatory labour fund and fund of guaranteed worker's allowances contributions.
Employed persons
Health and accident insurance
9% (employee's burden)
Assessment basis: employee's revenues less social insurance contributions (pension + disability + sickness) in part which was employee's share in those contributions.
Health insurance is not deducted from taxable revenues / income for income tax purposes nor deducted from tax (PIT).
Pension insurance
Retirement insurance: 19.52% (half of which is employee's share)
Disability insurance: 8% (1.5% is employee's share, 6.5% is employer's share)
Accident insurance: 1.67% - applies to contribution payer who registered up to 9 people for accident insurance purposes;
otherwise (if more than 9 people registered) contribution rate is set individually within the range 0.67% - 3.33% depending on affiliation of contribution payer to a given group of activity, potentially multiplied by corrective factor (0.5 - 1.5) set for a given contribution payer; Accident insurance contribution is employer's burden entirely.
Sickness insurance: 2.45% (employee's burden)
Sickness contribution for employee is mandatory.
Maximum contribution
Pension and disability contributions are not paid from surplus of the assessment basis (revenues) exceeding 30 times multiplied amount of avarage monthly salary gross in public sector projected for a given year; then in 2023 the cap is: 30 x PLN 6,935 = PLN 208,050
No cap for accident and sickness contributions as well as obligatory labour fund and fund of guaranteed worker's allowances contributions.
Others
(1) Obligatory labour fund: 2.45% (employer's burden)
(2) Contributions to State Fund for the Rehabilitation of the Disabled - obligatory monthly contributions for employers hiring at least 25 employees not achievieng the 6% level of employed disabled people; monthly payment: 40.65% of avarage monthly salary in public sector multiplied by number of disabled employees that would need to be hired to reach mentioned level (non-tax deductible cost of employer).
(3) Contributions to company social benefits fund - obligatory for employer hiring at least 50 employees, also where at least 20 employees are hired in certain circumstances; otherwise - optional (with additional option of paying leave benefits instead in certain circumstances); basic contribution to company social benefit fund or the amount of leave benefit attributable to a single employee - yearly at least 37.5% of avarage monthly salary in public sector (tax deductible cost of employer).
(4) sick pay for certain period.
Severance fund
Obligatory contributions on Fund of Guaranteed Workers' Allowances - 0.1%; employer's burden entirely (tax deductible cost of employer, same as contributions to Labour Fund)
Non-wage labor cost
Obligatory medical examination of employees, health & safety trainings;
other benefits basically granted to employees at the discretion of employer
