Hiring people under a contract of mandate (umowa zlecenia) has become one of the most popular forms of cooperation between employers and workers in Poland. Businesses often choose this form because of its greater flexibility and seemingly lower costs compared with an employment contract. However, the real cost of hiring under a contract of mandate can vary considerably depending on the contractor's situation and insurance status.
The choice of the right form of work should depend above all on the nature of the tasks performed, not just on financial aspects. A contract of mandate is governed by the Civil Code and offers more freedom in shaping the terms of cooperation, but it also comes with specific obligations regarding contributions to ZUS (Social Insurance Institution) and taxes.
In 2026, the minimum hourly rate for a contract of mandate is PLN 31.40 gross, and from 1 January 2027 it will be PLN 32.30 gross. This means the contractor cannot receive less than this amount for each hour worked. As a rule, this obligation applies to contracts of mandate concluded by businesses and other organisational units – with exceptions, e.g. where the contractor decides on the place and time of performing the mandate and is entitled only to commission (Article 8d of the Minimum Wage Act)
The total cost of hiring under a contract of mandate consists of several elements that must be taken into account when planning the payroll budget. The main components are the contractor's gross pay, the ZUS contributions financed by the principal and any contributions to Employee Capital Plans (PPK).
Structure of ZUS contributions on a contract of mandate
The ZUS contribution system for a contract of mandate differs from that for an employment contract, although in many cases the similarities are significant. The amount and type of contributions depend on the contractor's status and on whether the contract of mandate is their only source of income or additional work.
ZUS contributions are divided into those financed by the principal and those covered by the contractor. Each party bears specific financial burdens that must be taken into account when calculating employment costs.
| Type of insurance | Principal's contribution | Contractor's contribution | Legal basis |
|---|---|---|---|
| Pension | 9.76% | 9.76% | Social Insurance System Act |
| Disability | 6.50% | 1.50% | Social Insurance System Act |
| Accident | 1.67% | - | Act on social insurance against accidents at work and occupational diseases |
| Sickness | - | 2.45% | Voluntary for the contractor |
| Health | - | 9.00% | Act on publicly funded healthcare services |
The accident insurance contribution is a standard 1.67 percent and is fully financed by the principal. This rate applies to payers who register no more than 9 people for accident insurance (also in the contribution year starting on 1 April 2026); for payers with at least 10 insured persons it depends on the business activity group and a correction factor (Article 28 of the Accident Insurance Act)
In addition, the principal must pay contributions to the Labour Fund (FP) and the Solidarity Fund (FS) totalling 2.45 percent (in 2026, 1.00% for FP and 1.45% for FS) – when the contribution base is at least the minimum wage – and to the Guaranteed Employee Benefits Fund (FGŚP) of 0.10 percent of gross pay. These contributions do not apply to all categories of contractors, and exemptions apply in certain situations.
Contributions to Employee Capital Plans are an additional element of the employment cost. The principal's basic contribution is 1.5 percent of the contractor's pay, but the employer may decide to finance an additional contribution of up to 2.5 percent of pay.
A contract of mandate as the only source of work
When a contract of mandate is the contractor's only source of income, full ZUS contributions apply on terms similar to an employment contract. The contractor is compulsorily covered by pension, disability and accident insurance, while sickness insurance is voluntary. The rules differ for ZUS contributions for a pensioner on a contract of mandate.
The total employment cost in this situation includes gross pay and all ZUS contributions financed by the principal. This means the employer must set aside around 20 percent of gross pay on top to cover its contribution obligations (with pay below the minimum wage – around 18 percent, because there are no FP and FS contributions).
People working under a contract of mandate are insured from the day stated in the contract as the start of its performance until the day it is terminated or expires. The payer files the ZUS registration within 7 days of the date the insurance obligation arises (Article 36 section 4 of the Social Insurance System Act)
A practical example shows the real cost of hiring a person whose only source of income is a contract of mandate. Suppose the contractor earns PLN 4,300 gross a month and is registered for all social insurance and voluntary sickness insurance.
- Calculate the contributions financed by the principal
- Add the pension contribution (9.76% of PLN 4,300 = PLN 419.68)
- Add the disability contribution (6.5% of PLN 4,300 = PLN 279.50)
- Include the accident contribution (1.67% of PLN 4,300 = PLN 71.81)
- Add the FGŚP contribution (0.1% of PLN 4,300 = PLN 4.30)
- Check the Labour Fund and Solidarity Fund contribution – PLN 0, because the PLN 4,300 base is lower than the minimum wage (PLN 4,806 in 2026)
The total contributions financed by the principal are PLN 775.29, which means the total employment cost is PLN 5,075.29 a month with gross pay of PLN 4,300.
Several contracts of mandate with different employers
The situation becomes more complicated when the contractor works under several contracts of mandate concluded with different principals. In that case, the obligation to pay social insurance contributions depends on the total pay from all contracts in a given month.
Social insurance contributions are compulsory under successive contracts (by date of conclusion) until the combined contribution base under them reaches the minimum wage. Once this threshold is reached, only the health insurance contribution is compulsory under each subsequent contract of mandate, and social insurance is voluntary (Article 9 sections 2 and 2c of the Social Insurance System Act).
The minimum wage in 2026 is PLN 4,806 gross, and from 1 January 2027 it will be PLN 4,950 gross. Once the combined base from earlier contracts of mandate reaches this amount, only the health insurance contribution financed by the contractor is compulsory under subsequent contracts
The order of contracts for contribution purposes is determined by the chronology of their conclusion. The first contract concluded is subject to compulsory social insurance contributions, the second as well if the base under the first is lower than the minimum wage – and so on, until the combined base reaches that amount.
A practical example: the contractor already has two contracts of mandate whose combined income exceeds the minimum wage. A third contract for PLN 4,700 gross will be compulsorily subject only to the health insurance contribution. In that case, the total cost for the third principal is just the gross pay of PLN 4,700 (unless the contractor voluntarily joins social insurance).
- The first contract is subject to full ZUS contributions
- The second contract is subject to contributions until the limit is reached
- The third and subsequent contracts are subject only to the health insurance contribution
- The health insurance contribution is financed by the contractor
- The principal bears a cost equal to the gross pay
A contract of mandate with your own employee
A special situation arises when the principal concludes a contract of mandate with its own employee. In that case, the contractor is treated as an employee and is covered by all insurance on the same terms as under an employment contract (Article 8 section 2a of the Social Insurance System Act).
The base for social insurance contributions is the total income from the employment contract and the contract of mandate. The employer does not have to register the employee for insurance again, but must include the income from the contract of mandate when calculating contributions.
With a contract of mandate concluded with your own employer (or performed for it), sickness insurance is compulsory, as under the employment contract, and the income from the mandate is added to the employee's contribution base (Article 8 section 2a and Article 18 section 1a of the Social Insurance System Act)
The employment cost in this situation includes the gross pay under the contract of mandate and all ZUS contributions financed by the employer. Example: an employee earning PLN 4,900 under an employment contract receives an additional contract of mandate for PLN 450 gross. We prepare bills for mandate contracts and ZUS registrations for our clients as part of our HR and payroll services.
A retail company employed a worker under an employment contract for PLN 4,900 a month. During the Christmas period, it offered her an additional contract of mandate to prepare the shop decorations for PLN 450 gross. ZUS contributions were calculated on the combined amount of PLN 5,350, and the cost of the additional contract of mandate came to PLN 542.17, including the contributions financed by the employer.
A contract of mandate with a pensioner or disability pensioner
Hiring retirement or disability pensioners under a contract of mandate may come with certain contribution reliefs, but it does not remove the obligation to pay ZUS contributions. If the contract of mandate is the only insurance title (the pensioner is not at the same time in an employment relationship), the principal must pay pension and disability contributions (Article 9 section 4a of the Social Insurance System Act).
An important relief is the exemption from contributions to the Labour Fund, the Solidarity Fund and the Guaranteed Employee Benefits Fund for people who have reached the age of 55 (women) or 60 (men) – it depends on age, not on receiving a retirement or disability pension (Article 261 of the Labour Market and Employment Services Act, Article 9b section 2 of the Act on the protection of employee claims in the event of employer insolvency). The health insurance contribution remains compulsory.
A retirement or disability pensioner working under a contract of mandate is compulsorily subject to pension and disability contributions. The sickness contribution is voluntary and can be taken out at the contractor's request
A practical example: a 65-year-old pensioner working under a contract of mandate for PLN 3,600 gross a month who has not opted for voluntary sickness insurance. The contributions financed by the principal are:
- Pension contribution: PLN 351.36
- Disability contribution: PLN 234.00
- Accident contribution: PLN 60.12
- No FGŚP contribution because of age (there are also no FP and FS contributions because PLN 3,600 is less than the minimum wage)
The total employment cost is PLN 4,245.48 with gross pay of PLN 3,600.
Hiring school and university students
The most financially advantageous form of hiring under a contract of mandate is working with school and university students up to the age of 26. This group of contractors is not subject to social insurance under a contract of mandate (Article 6 section 4 of the Social Insurance System Act), and consequently not to health insurance under that contract either.
Principals therefore do not pay ZUS contributions for school and university students. Regardless of student status, income of people under 26 from a contract of mandate is exempt from PIT (personal income tax) up to PLN 85,528 a year (the relief for young people, Article 21 section 1 point 148 of the PIT Act), so as a rule the payer does not withhold tax advances from them. This means the total employment cost equals the gross pay.
School and university students up to the age of 26 are not subject to social insurance under a contract of mandate. People under 26 also benefit from the PIT exemption up to PLN 85,528 a year (relief for young people), which makes this form of hiring the most economical for employers
A practical example: a student works as a waitress in a restaurant, earning the minimum hourly rate of PLN 31.40 (2026). In July she worked 107 hours, giving gross pay of PLN 3,359.80. The total employment cost for the employer is exactly the same amount.
- No ZUS contributions for the principal
- No PIT advance (relief for young people under 26)
- Cost equal to gross pay
- The simplest administrative settlement
- The biggest saving for the employer
A contract of mandate and running a business
A complicated situation arises when the contractor also runs a business. If the contract of mandate is performed within the scope of the business activity, it is not a separate title to social insurance.
If the contract of mandate and the business are carried out separately, the insurance titles overlap. The obligation to pay contributions depends on the contribution base from the business and the amount of pay under the contract of mandate.
A business owner paying contributions from a preferential base (Article 18a) or under the "small ZUS plus" scheme (Article 18c) who performs a contract of mandate is compulsorily covered by pension and disability insurance under both titles (Article 9 section 2a of the Social Insurance System Act). With full contributions from the business, what matters is whether the base under the contract of mandate is lower than the lowest base for business owners (PLN 5,652 in 2026) – in that case, contributions from the business are compulsory
Example: a business owner paying preferential ZUS contributions on their business takes on additional work under a contract of mandate for PLN 1,200 a month. Because they use the preferential base for the business and the combined base from both titles does not reach the minimum wage, contributions are compulsory from both sources. The minimum that must be paid per hour is explained alongside our mandate contract template and minimum rate.
The owner of a small consultancy firm paid preferential ZUS contributions (in 2026, PLN 456.18 a month for social insurance including sickness insurance). He also started working with another company under a contract of mandate for PLN 1,200 a month. Because of the preferential base for the business and because the combined amount from both titles did not reach the minimum wage, he had to pay pension and disability contributions from both sources of income.
Net-amount contracts and employment cost
More and more businesses decide to conclude contracts of mandate for a net amount, i.e. "take-home pay". This can lead to unexpected increases in employment costs during the contract.
The final net payment is affected by various factors that may change during the year. Exceeding the tax threshold, losing the tax exemptions for young people or a change in tax-deductible costs may affect the amount of tax.
Since January 2023, contractors have been able to submit a PIT-2 form (statement for the payer of tax advances) to the principal to reduce their income tax advances by part of the tax-reducing amount (Article 31b section 1 of the PIT Act; the statement can be submitted to no more than three payers). Previously, this was not possible
If the contractor has agreed on a specific net amount, changes in taxation cannot reduce their payment. In that case, the employer must increase the gross pay to keep the agreed net amount.
An increase in gross pay automatically increases the total employment cost through higher ZUS contributions financed by the principal. That is why net-amount contracts carry a risk of unexpected costs for the employer.
Comparison of costs of different forms of work
An analysis of the costs of hiring under a contract of mandate compared with other forms of cooperation shows significant differences depending on the contractor's status. The most economical option is hiring students, and the most expensive is hiring people with no other insurance titles.
| Contractor category | Principal's ZUS contributions | Additional costs | Cost relative to gross |
|---|---|---|---|
| Student under 26 | None | None | 100% |
| Person with other work | None (after the limit is exceeded) | None | 100% |
| Only work | Full contributions | FP and FS (from the minimum wage), FGŚP | Around 120% |
| Retirement/disability pensioner (woman aged 55+, man aged 60+) | Social insurance contributions | No FP, FS, FGŚP | Around 118% |
The total cost of hiring under a contract of mandate can differ by as much as 20 percent depending on the contractor's status. The most expensive option is hiring a person with no other insurance titles, and the cheapest is working with students
When planning the payroll budget, employers must take into account not only hourly rates but also all additional costs resulting from the contractors' status. A sound recruitment strategy should take these cost differences into account.
Practical tips for employers
Managing the cost of hiring under contracts of mandate effectively requires a well-thought-out strategy that takes into account the specifics of different categories of contractors. Employers should analyse not only current costs but also potential changes during the contract.
It is crucial to determine the contractor's insurance status correctly before concluding the contract. Incorrect classification may lead to additional costs or problems with ZUS in the future.
- Check the contractor's insurance status before concluding the contract
- Include all ZUS contributions in the cost calculation
- Consider the impact of seasonality on the cost of hiring students
- Monitor changes in the rules on ZUS contributions
- Document all arrangements regarding forms of pay
Particular attention should be paid to net-amount contracts, which may generate unexpected costs. It is recommended to conclude contracts for a gross amount with all pay components clearly specified.
