HR Legal Update: Social fund contribution jumps in 2024: There’s still time to reduce it!

The basic Company Social Fund (ZFŚS) contribution per employee in 2024 jumps significantly to PLN 2417.17, compared to 2023. That is an increase of PLN 754.17 in the first half of the year and PLN 502.80 in the second half, which represents the most substantial rise in the contribution observed in recent years. This significant change is likely to have a material impact on overall staffing costs, potentially exceeding initial budgetary assumptions.

The final amount of the basic ZFŚS contribution in 2024 will depend on the average number of full-time employees (FTE). Here is a breakdown of what to expect:

• 100 employees – PLN 241,714.13 (increase by PLN 62,848.63);
• 500 employees – PLN 1,208,570.63 (increase by PLN 314,243.13);
• 1 000 employees – PLN 2 417 141.25 (increase by PLN 628 486.25).

However, it will also depend on the categories of employees and the increases applied for those categories. For instance, the 2024 contribution for employees performing work in special conditions or of a special nature is PLN 3,222.86.

Is it possible to mitigate the impact of contribution increases?

The good news is that employers have options to reduce the financial burden of the increased ZFŚS contribution. Regulations allow for modifying the contribution amount through collective bargaining agreements or remuneration regulations. However, any such change requires reaching an agreement with employee representatives.

The first payment for the ZFŚS (75% of the calculated contribution) is due on 31st May. Therefore, exploring potential adjustments to the contribution rate before this deadline is highly recommended.

It is worth noting that recent media reports suggesting that the contribution rate can only be changed by the end of January are inaccurate.

Our team is available to assist you in evaluating your options for reducing the contribution impact or adapting your employee benefit programs, including those financed by the Fund. Please do not hesitate to contact us for further guidance.