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 (i.e. 6.5% paid by the employer and 1.5% by the employee);
- 2.45% for sickness insurance paid by the employee;
- between 0.40% and 8.12% depending on headcount, for occupational accident insurance, paid by the employer; and
- 9% for health insurance, payable by the employee.
Further, the employer must pay a contribution to the Fund of Guaranteed Employee Benefits (i.e. 0.10%), to the Labour Fund (i.e. 2.30%) and to the Solidarity Support Fund for the Disabled (i.e. 0.15%).
Based on these figures, in the graph, we have assumed a total maximum amount for the employer of 26,78% (which includes a new amount of the contribution to the Labour Fund) and a total amount for the employee of 22.71%.
The employer must calculate and pay the contributions monthly to the social security office by the 15th day of the month following the month for which they are payable (including contributions to the Fund of Guaranteed Employee Benefits and the Labour Fund). In 2019, the overall cap on annual retirement and pension contributions is a salary of PLN 142,950 (EUR 33,335.40).
Author: Raczkowski Paruch
Date: March 2019
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.