Employee costs (UOP, UZ, UOD)
What does an employee's salary consist of?
Remuneration should be set in such a way that it corresponds to the type of work performed and the qualifications needed to perform it.
The salary consists of:
- Fixed elements - monthly basic salary;
- Variable elements - bonuses or commissions.
The minimum salary in 2023 is PLN 3,490 gross - for a full-time contract employee.
In this case, the gross amount is the sum of: the salary "on hand", income tax and part of social security contributions.
The gross amount includes the following contributions:
- Health - 9% (all on income);
- Pension - 9.76% (half is paid by the employer);
- Disability pension - 1.50% (half, the employer pays the rest);
- Sickness benefit - 2.45% (total).
The cost of hiring an employee under an employment contract (Umowa o pracę)
The cost of hiring an employee consists of:
- Gross salary;
- Social security contributions.
Their amount depends on the fixed salary. Taxes and contributions are calculated as a percentage. Social Security contributions collected by the employer are:
- Pension insurance: 9.76%;
- Disability insurance: 6,50%;
- Labor Fund (FP): 2,45%;
- Accident insurance: 0.67% to 3.33% (most often 1.67%);
- Guaranteed Employee Benefits Fund (FGŚP): 0,1%.
If you want to hire an employee under an employment contract, you are bound by other regulations, mainly those of the Labor Law.
Among other things, you must:
- Provide employees with access to regular health and safety training;
- Keep and maintain employee records for 10 years;
- Refer employees for medical examinations (initial, periodic, follow-up);
- Provide sick leave benefits for the first 33 or 14 days of absence (depending on age);
- Guarantee paid vacation (20 or 26 days) and compensate employees for overtime work;
- Provide personal protective equipment and, if necessary, work clothes and footwear.
The cost of hiring an employee under a contract of mandate (Umowa zlecenia)
With a contract of mandate, the total cost of hiring an employee depends on several factors. The most important of these is whether the person is entitled to social security benefits.
In practice, it is necessary to know whether the person is employed elsewhere (including under a contract of mandate), is self-employed, is studying, is receiving maternity benefits, etc.
A contract of mandate with a person for whom this is the only source of income:
If we enter into a contract of mandate with a person who does not work anywhere, does not have his own business, etc., then the contract of mandate is fully contributory. - Such a contract is completely contributory. This means that you pay Social Security, FP and FGSP in addition to the total. So the total cost of hiring an employee is the same as for an employment contract.
Contract of mandate with a student under 26 years of age:
If you employ a student or student, you only pay the full amount. Student and student surety contracts are not subject to premiums. So you do not pay any amounts for social security, FP and FGSP.
Surety contract with a person who works elsewhere:
If the employee receives the minimum monthly salary (PLN 3,490 gross) or more, you also do not pay Social Security contributions. Then you pay only the full amount.
For such a contract, the minimum wage in 2023 is PLN 22.80 gross per hour.
The cost of hiring an employee on the basis of a contract for a work of art («Umowa o dzieło»)
A contract for work is not subject to taxation. You do not pay any Social Security contributions on it. Your value is only the gross amount.
There are two exceptions to this rule. If you enter into a work contract with your own employee (i.e. a person employed under an employment contract) or your employee enters into a contract with someone else, but performs work for you - Social Security contributions are deducted from the work contract.
Can I deduct the cost of hiring an employee?
Yes - the employee's salary is included in non-taxable expenses (NTCs). What else is included in the BUI if you hire employees? According to the regulations, you can deduct such expenses as:
- All parts of an employee's salary, including overtime, bonuses, bonuses, etc;
- Mandatory medical examinations or health and safety training;
- One-time and team-building activities;
- Travel, including expenses for the use of a vehicle;
- Education and training of employees.
Such expenses are recognized as non-tax expenses in the month in which they are actually incurred (paid).
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