The modern labor market demands more than just competitive salaries — employers are increasingly expected to offer a wide range of non-wage employee benefits. These perks aim to improve employee satisfaction, loyalty, and motivation, but they also bring certain tax and social security obligations for employers.

Types of employee benefits

According to Polish tax law, employee benefits are treated similarly to non-cash or partially paid compensation. As a result, the tax treatment of benefits depends on their type:

• employer-subsidized meals or beverages are not exempt from personal income tax (PIT),
• work uniforms or reimbursements for such clothing are not exempt from PIT,
• private healthcare plans or insurance policies paid for by the employer are classified as non-cash income and taxed under standard PIT rules.

Most common employee perks

Some of the most popular employee perks include:

• private medical care – providing fast access to healthcare services without long waiting time,
• sports cards – allowing access to gyms, swimming pools, and fitness classes,
• meal subsidies – often offered through lunch vouchers or in-house cafeterias,
• flexible working hours – giving employees better work-life balance,
• training and development programs – helping employees grow their skills,
• remote work – increasingly offered as part of modern workplace flexibility.

Taxation of employee benefits

As Article 12 of the PIT Act stipulates, all non-cash benefits received by employees are considered taxable income. This means that most benefits are subject to personal income tax (PIT) at rates of 12% or 32%, depending on the employee’s income bracket.

Social Security Contributions

Most employee benefits also require the employer to calculate social security (ZUS) and health insurance contributions. The only notable exception is when the benefit is funded through the Company Social Benefits Fund (ZFŚS) — in such cases, certain tax and contribution exemptions may apply.

Risk of improper benefit calculations

Falling to properly calculate employee benefits can lead to serious financial and legal consequences, including:

• additional tax and ZUS liabilities,
• penalties imposed after audits by tax authorities or ZUS,
• the need to correct payroll records and submit revised PIT-11 declarations.

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Text based on: https://www.ifirma.pl/blog/benefity-dla-pracownikow-a-rozliczenie-wynagrodzenia-pracownika/; https://sip.lex.pl/akty-prawne/dzu-dziennik-ustaw/podatek-dochodowy-od-osob-fizycznych-16794311/art-12