Poland plans to overhaul exemptions from social security contributions, including token-based pay

Poland’s rules on which forms of income escape social security contributions could be rewritten, with digital tokens among the issues prompting the review.

Deputy Family Minister Sebastian Gajewski said the ministry sees a need to assess whether the regulation remains fit for purpose. The current rules date from 1998 and, he said, were written in language that is partly archaic and no longer reflects economic, social and technological realities.

The regulation lists exceptions to the amounts on which employers pay contributions to the Social Insurance Institution, or ZUS. The contribution base is generally linked to income, but not every payment falls within it. The ministry has asked other departments, including the ministries responsible for development, infrastructure, sport and science, to assess provisions affecting their areas. It also plans to consult trade unions and employer organizations.

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I see a need for a comprehensive assessment of whether this regulation is still up to date, because it was issued in 1998, in completely different economic, social and technological circumstances.

The issue of token-based remuneration was raised by the NSZZ Solidarność trade union. Its expert Barbara Surdykowska said unclear court rulings could allow part of a worker’s pay to be provided as a token and later resold. That could create a financial benefit without social insurance contributions being charged on the amount.

The ministry will examine whether the value of a token could qualify as a material benefit excluded from the contribution base. Gajewski said officials must balance the interests of insured workers and the Social Insurance Fund with changing technology, economic conditions and employee expectations around non-cash benefits.

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On the one hand, we should approach this issue cautiously, taking into account both the interests of insured people and the interests of the Social Insurance Fund.