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A write-off for the Social Fund by September 30

In connection with the Company’s Social Benefits Fund, the employer is obliged to transfer a copy to the fund’s account for the employees employed by it. The first part of the write-off must be transferred to the social fund account by May 31. Employers have until September 30 to transfer the second installment of the write-off or the possible amount resulting from its increase.

It is worth remembering that in accordance with the Act on the Company Social Benefits Fund (Act of 4 March 1994 on the Company Social Benefits Fund, Journal of Laws 1994 No. 43 item 163), the obligation to establish the Company Social Benefits Fund applies to employers employing at least 50 employees per for full-time equivalents as at 1 January of a given calendar year.

The amount of the write-off in a given calendar year is determined by preparing a forecast of average employment in each month.

Due to the doubling of the minimum wage in the current year, the amount of the write-off for Social Benefits Fund is also determined twice. In 2023, the amount of the mandatory contribution to the Social Benefits Fund for an employee employed under a full-time employment contract is:

  • in the period from 1 January 2023 to 30 June 2023 – PLN 4,434.58;
  • in the period from July 1, 2023 to December 31, 2023 – PLN 5,104.90.

Employers were obliged to make the first write-off by May 31 in the amount of 75% of the full write-off amount. By the end of September, enterprises should transfer the remaining 25% of funds allocated for this purpose to the ZFŚS account.

At the end of each calendar year, the level of employment is verified, and as a result, the determined contribution to the social fund is adjusted by determining the actual level of employment in a given year and multiplying this number by the value of the basic contribution. The difference resulting from the above calculation should be returned to the company’s account in the event of an overpayment on the fund’s account, and in the case of an underpayment on the ZFŚS account, the missing funds should be transferred to the ZFŚS account.

Let us remind you that the funds collected under the Company Social Benefits Fund may be used only for social purposes, e.g.:

  • co-financing for employees’ holidays,
  • cultural and educational as well as sports and recreation activities,
  • co-financing for the establishment of an in-company nursery, children’s club or kindergarten,
  • benefits for employees, eg in connection with a serious random event, chronic disease or difficult life situation.

The employer is responsible for administering the funds in the fund account. Unused fund resources in a given year may be used in the next calendar year.