Social security contributions in detail

Social security contributions are obligatory and consist of pension, disability, accident and sickness insurance. The amounts of the contributions, based on the employee’s gross remuneration, are as follows:

  • 19.52% for pension insurance, paid by the employer and employee in equal parts (i.e. 9.76% each);
  • 8% for disability insurance, with 6.5% paid by the employer and 1.5% by the employee);
  • 2.45% for sickness insurance, paid by the employee;
  • 1.67% (this percentage may vary depending on headcount and kind of performed business activity) for occupational accident insurance, paid by the employer;
  • 0.10% for the Fund of Guaranteed Employee Benefits, paid by employer;
  • 2.30% for the Labour Fund, paid by employer; and
  • 0.15% for the Solidarity Support Fund for the Disabled, paid by employer.

The employer may also be obliged to pay a contribution of 1.5% to the Early Retirement Fund if its employees are working in special or hazardous conditions.

The overall cap (limit) on annual pension and disability contributions is a gross salary of PLN 156,810.00 (approximately EUR 36,434.80). The cap is subject to annual valorisation.

An additional health insurance contribution, paid by employee, amounts to 9% of the assessment basis (gross income decreased by the amount of the employee’s share of social security contributions). Of this, 7.75% is deducted from the employee’s personal income tax advance, and the remaining 1.25% is an extra cost for the employee.

The employer, as social security remitter, must calculate and pay all of the monthly contributions to the social security office by the 15th day of the month following the month for which they are payable.

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Author: Raczkowski 

Date: April 2020

Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.