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Obligation to make a transfer for the first part of the ZFŚS deduction by May 31

An employer who creates a Company Social Benefits Fund in his company is obliged to make a contribution to the fund’s account in an amount depending on the number of employees. The basis for determining the amount of the deduction is the average planned level of employment in a given calendar year. The first part of the deduction must be transferred to the Social Fund account by May 31.

Pursuant to the provisions of the Act on the Social Benefits Fund (Act of March 4, 1994 on the Company Social Benefits Fund, Journal of Laws of 1994, No. 43, item 163), the employer transfers a copy to the fund’s account by September 30, with the first part amounting to at least 75% should be transferred to the Social Fund account by May 31 of a given calendar year.

From 2024, the amount of the ZFŚS deduction has changed and the basis for its calculation is the average monthly salary of the national economy in the second half of 2023.

According to the information published by the Central Statistical Office, the average monthly salary in the national economy in the second half of 2023 was PLN 6,445.71. This amount is the basis for calculating the write-off for the Social Benefits Fund in 2024.

The amount of the basic deduction is 37.5% of this amount, so the amount of the mandatory deduction in 2024 is PLN 2,417.14. However, there are exceptions where the entrepreneur should use a different amount:

  • PLN 3,222.86 – the amount of the deduction increased for an employee performing full-time work and performing work in special conditions or work of a special nature within the meaning of the provisions on bridging pensions (50%),
  • PLN 322.29 – the amount of the deduction for a juvenile employee in the first year of education (5%),
  • PLN 386.74 – the amount of the deduction for a juvenile employee in the second year of education (6%),
  • PLN 451.20 – the amount of the deduction for a juvenile employee in the third year of education (7%),
  • PLN 402.86 – the amount of the increase in the deduction for each employed person with a significant or moderate degree of disability and for each retiree and disability pensioner who is entitled to social care.

The employer should transfer the remaining 25% of the deduction to the Social Fund account by the end of September.

How to determine the amount of deduction for employees?

This should be done in two steps. First, the projected employment in 2024 should be determined. Then, the amount of the deduction should be determined by multiplying the forecast employment times the amount of the basic deduction. In this way, we obtain the amount that the employer should transfer to the fund account.

After the end of the calendar year, the value of the deduction should be adjusted based on historical personnel data by determining the actual level of employment in a given year and multiplying this number by the value of the basic deduction. The difference resulting from the above calculation should be returned to the company’s account in the event of an overpayment on the fund account, and in the event of an underpayment on the Social Fund account, the missing funds should be transferred to the Social Fund account.

Funds transferred by the employer to the account of the Company Social Benefits Fund (deductions and increases) are included in the employer’s operating costs.