Poland: Rise in company social fund contributions in 2024 – how can it be countered?
Written By
Partner
Poland
As a partner and Head of our Employment team in Warsaw, I am an experienced employment law expert specialised in litigation, including civil and criminal cases involving corruption and trade secrets.
In 2024, for the first time in many years, there will be no freezing of the company social benefit fund base amount for determining contributions. The head of the Polish Central Statistical Office has released the average salary figure for the second half of 2023. This will serve as the basis for calculating company social benefit fund contributions this year.
The figure is PLN 6,445.71, which is a 25% increase on the previously applicable base amount used to calculate social benefit fund contributions.
As a result, employers operating company social benefit funds can expect to see expenditure on fund benefits to rise significantly this year (see table below):
| Employee category | Contribution (increase vs. 2023) |
| A worker employed under so-called normal conditions | PLN 2,417.14 (+ PLN 502.80) |
| An employee performing work in special conditions or work of a special nature within the meaning of the provisions on bridging pensions | PLN 3,222.86 (+ PLN 670.41) |
| Young workers | PLN 322.29 for the first year of study (+ PLN 67.04) PLN 386.74 for the second year of study (+ PLN 80.45) PLN 451.20 for the third year of study (+ PLN 93.86) |
In practice, this means that a company with an average of 100 employees per year can reckon with an increase in company social benefit fund contributions of as much as PLN 50,280, while a company with 1,000 employees will now spend up to PLN 502,280 more on contributions than last year.
How can the increase in company social fund contributions be countered?
Under the Company Social Benefits Funds Act it is possible to mount an effective defence against an increase in contribution levels. To do so, an employer must set a company-specific amount for contributions by way of an appropriate procedure.
As a possible change in the amount of company social benefit contributions only has future effect, it is worth setting a company-specific contribution amount as soon as possible.
How we can help you
We can support you in estimating your company's increased social expenditure in 2024, and help with your procedure for agreeing on an individual contribution amount.
