10.10.2023 Labour law

[Poland] ZUS contributions in 2024 will be higher, cost of employment will also increase

Increasing the minimum wage twice in 2024 will have an impact on ZUS contributions and benefits paid by ZUS. This will result in, among other things, an increase in ZUS contributions for new companies as well as higher allowance for employees working at night. What exactly will increase and how much? We explain. 

Minimum wage increase and other indicators 

The amount of the minimum wage affects a number of different indicators including, among others, certain Social Security (ZUS) contributions and benefits such as night work allowance and severance pay. In 2024, the minimum wage will go up twice: 

  • from 1 January 2024 to PLN 4,242   
  • from 1 July 2024 to the amount of PLN 4,300 

The Regulation of the Council of Ministers of 14 September 2023 on the amount of the minimum wage and the amount of the minimum hourly rate in 2024 was published in the Journal of Laws on 15 September 2023 and comes into force on 1 January 2024. 

Higher Small ZUS for new companies from January 2024 

The basis for calculating the preferential ZUS contributions for newly established businesses, the so-called Small ZUS, depends on the minimum wage and amounts to 30% of it. 

Taking into account the increase in the minimum wage twice in 2024, the preferential ZUS base for new companies will amount to as follows: 

  • from 1 January 2024 – PLN 1272.60 gross 
  • from 1 July 2024 – PLN 1290 gross 

At present, however, in the period from July to December 2023, the above base is PLN 1080. 

The amounts of the individual preferential contributions from 1 January to 1 July 2024, on the other hand, will amount to: 

  • old-age pension contribution – PLN 248.49 
  • disability pension contribution – PLN 101.84 
  • sickness contribution – PLN 31.19 
  • accident insurance contribution – PLN 21.26  

It should be noted that the preferential ZUS contributions for new companies are available for the first 24 full months. 

The table below presents the changes in contributions under the Small ZUS:

Small ZUS contributions 
Type of contribution July-December 2023 January-July 2024 July-December 2024 
Old-age pension contribution 210.82  248.49  251.81  
Disability pension contribution 86.40  101.84  103.20  
Sickness contribution 26.46  31.19  31.61  
Accident insurance contribution  18.04  21.26   21.55  

Higher night work allowance in 2024 

A night work allowance is payable to any employee working at night and amounts to 20 per cent of the hourly rate based on the minimum wage. However, according to the Labour Code, night work is work that takes place between 21.00 and 7.00. 

The amount of the night work allowance is calculated by dividing the minimum wage by the number of hours worked per month and multiplying by 20%. 

Night work allowance = minimum wage / number of hours worked per month x 20% 

For example, in September 2023, the working time is 168 hours and the minimum wage is PLN 3,600, so the allowance for an hour of night work will be PLN 4.29 respectively.   

In January 2024, the allowance for an hour of night work will increase to PLN 5.05, up PLN 0.76 in relation to September 2023. 

Cash severance payments and other benefits also go up 

Other entitlements such as, among others, cash severance payments or cash benefits from a paid graduate trainee contract will also increase in 2024. The increase is due to the fact that their amount is dependent on the minimum wage. 

The table below shows the change in the amount of each indicator in 2024:

Type of benefit January to July 2024, minimum wage 4242 PLN gross July to December 2024, minimum wage of PLN 4300 gross July to December 2023, minimum wage 3600 PLN gross 
Maximum cash severance payment for termination of an employment contract with an employee for reasons not attributable to the employee 63 630 PLN  64 500 PLN  54 000 PLN  
Minimum compensation for discrimination or mobbing 4 242 PLN  4 300 PLN  3 600 PLN  
Remuneration for on-call and standby time for reasons not attributable to the employee 4 242 PLN  4 300 PLN  3 600 PLN  
Monetary benefit of a paid graduate practice contract 8 484 PLN  8 600 PLN  7 200 PLN  
Training benefit for a person terminated as a result of outplacement 8 484 PLN  8 600 PLN  7 200 PLN  

As the table above shows, the minimum wage affects a wide variety of benefits, and a double increase in the minimum pay in 2024 and by as much as 20 per cent over the previous year will contribute to a significant increase in both next year’s benefits and burdens such as Social Security contributions for new businesses. 

Minimum wage increase and employers 

The high increase in the minimum wage, which is expected to account for almost 55% of the average salary projected for next year (PLN 7794), will be a very heavy burden for employers. 

The cost of employing one worker on the national minimum wage will increase from 1 January 2024 to PLN 5111, and from 1 July 2024 it will be PLN 5181. It should be recalled that currently, as of 1 July 2023, the cost for an employer to employ one worker earning the minimum wage is PLN 4337. 

Change in minimum wage and employee contract 

Employers, as a result of a change in the minimum wage, are obliged to draw up and hand over an annex to the contract to employees on the minimum wage, if their remuneration is specified in the contract by an amount. For contracts in which it is specified that the employee is paid the minimum wage in accordance with the statutory rate in force for the year in question, the employer may not draw up an annex and simply inform the employee of the change in pay. There is also an option to increase the salary in the form of a bonus up to the amount of the minimum wage. 

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