Polish Social Security

Social security contributions are obligatory and are paid partly by the employer and partly by the employee. Contributions are levied on the employee’s gross remuneration. Employees must contribute 13.71% in total (9.76% towards old age pension, 1.50% towards disability insurance and 2.45% towards health and maternity insurance). Employee contributions are tax deductible. Employers must contribute up to 19.74% in total (9.76% towards old age pension, 4.50% towards disability insurance, 2.45% towards health and maternity insurance and 0.67% to 3.60%, depending on the employer’s type of business activity, towards industrial injuries insurance). Additionally, employers have to contribute 0.10% of the employees’ salaries to the warranted employees’ claims fund (FGSP) and 2.45% to the labour fund (FP). There is a ceiling for the old age pension and disability insurance which is based on the maximum of the annual equivalent of 30 projected average monthly salaries in the calendar year: for 2008 the ceiling is PLN 85,290. There is no ceiling for the health and maternity insurance. Medical expenses are covered by an obligatory health insurance contribution of 9% payable by the employee and calculated on the employee’s gross remuneration after deduction of the employee’s contributions to old-age, disability and health and maternity insurance. Health insurance contributions are partially deductible from the taxable income (up to 7.75% of the base for health insurance contributions).