A contract of mandate (umowa zlecenia) with a pensioner is an increasingly popular form of cooperation between employers and people with an established right to a retirement pension. Many business owners wonder about the details of how such a contract is subject to contributions, especially in the light of the rules in force in 2026. The key questions concern not only the basic social insurance contributions, but also specific aspects related to the Labour Fund (Fundusz Pracy) and the Guaranteed Employee Benefits Fund (FGŚP).
Hiring a pensioner under a contract of mandate comes with specific contribution obligations that differ from standard employment. Employers must know the contribution rules well to avoid mistakes in their settlements with ZUS (Social Insurance Institution). It is particularly important to understand which contributions are compulsory and which are voluntary.
Features of a contract of mandate with a pensioner
A contract of mandate, also described as a contract of due diligence, is one of the basic forms of civil-law work in Poland. For pensioners, this form of cooperation is particularly important because of its flexibility and the possibility of continuing professional activity after retirement. The contractor undertakes to perform a specific legal act for the principal, while keeping greater independence than under an employment contract.
A contract of mandate can be concluded either in writing or orally, and both forms are equally legally binding. The Civil Code does not set detailed formal requirements for this type of contract, leaving the parties free to shape the terms of cooperation
However, the form of the contract should be chosen with care. The written form gives greater legal certainty and makes it easier to pursue any claims in court. In business practice, contracts of mandate with pensioners are usually concluded in writing, which allows the terms of cooperation to be set out precisely and later disputes to be avoided.
The minimum hourly rate for contracts of mandate in 2026 is PLN 31.40, and from 1 January 2027 it will be PLN 32.30, which is an important reference point when setting pay. Employers must take this amount into account when planning the cost of hiring a pensioner under a contract of mandate.
Elements of a contract of mandate with a pensioner
A properly drafted contract of mandate with a pensioner should contain all the key elements that make the terms of cooperation clear. The first essential element is a precise description of the parties, including the full details of the principal and the contractor. If the principal is a business, you should give the business name, registered address and identification number, while for the pensioner contractor personal details and a home address are enough.
A detailed description of the subject of the mandate is another key element of the contract. You should specify precisely the type of activities to be performed, the scope of duties and how they are to be carried out. The more detailed the description, the lower the risk of later misunderstandings between the parties.
A contract of mandate should contain clearly defined start and end dates of the cooperation. For open-ended contracts, you should state the start date and the conditions on which each party may terminate the contract
The amount of pay must be clearly stated in the contract, together with the method of payment. Pay can be set as a monthly or weekly amount or for completing a specific task. It is also worth including additional arrangements, such as the possibility of entrusting the mandate to third parties, the notice period or special conditions for carrying out the tasks.
The signatures of both parties are also essential, as they confirm acceptance of all the terms of cooperation. If the principal is a legal person, the contract is signed by a person authorised to represent the company.
Compulsory social insurance for a pensioner
Under the Social Insurance System Act, a pensioner working under a contract of mandate who is not at the same time in an employment relationship is compulsorily covered by certain types of insurance – the Act provides no exemption for pensioners from pension and disability contributions (Article 9 section 4a). If the pensioner also has an employment contract with another employer, the rules on overlapping insurance titles apply (Article 9 sections 1 and 1a). The basic insurance is pension insurance, for which both the contractor and the principal pay a contribution of 9.76 percent. This means the total pension insurance contribution is 19.52 percent of the contribution base.
Disability insurance is another compulsory element of the contributions on a contract of mandate with a pensioner. The contractor pays a contribution of 1.5 percent, while the principal bears a much higher contribution of 6.5 percent of the base. This split of the disability contribution (8 percent in total) comes directly from the Act (Article 16 section 1b of the Social Insurance System Act).
Accident insurance is financed entirely by the principal, who pays a standard contribution of 1.67 percent. This rate applies to contribution payers who register no more than 9 insured persons for accident insurance (50% of the highest rate for business activity groups – Article 28 section 1 of the Accident Insurance Act; it also applies in the contribution year starting on 1 April 2026)
Health insurance is also compulsory for a pensioner working under a contract of mandate. The health insurance contribution is 9 percent of the base and is financed entirely by the contractor. The base for the health insurance contribution is the amount remaining after deducting social insurance contributions from gross pay.
The exception is sickness insurance, which is voluntary for pensioners working under a contract of mandate. The contractor may apply to be covered by this insurance, but it is not compulsory. The decision to join sickness insurance should be considered carefully, because it involves additional costs, but it gives the right to sickness benefit.
Contributions to the Labour Fund and FGŚP
Special rules apply to contributions to the Labour Fund and the Guaranteed Employee Benefits Fund for pensioners working under a contract of mandate. As standard, 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) – but only if the monthly contribution base is at least the minimum wage (PLN 4,806 in 2026, PLN 4,950 from 1 January 2027) – and an FGŚP contribution of 0.10 percent of the contribution base.
For pensioners, however, there is an important exemption from these contributions. Contributions to the Labour Fund, the Solidarity Fund and FGŚP are not paid once the contractor has reached the age of 55 for a woman or 60 for a man. This exemption results from Article 261 of the Labour Market and Employment Services Act (applied accordingly to the FS) and from Article 9b section 2 of the Act on the protection of employee claims in the event of employer insolvency.
The exemption from FP, FS and FGŚP contributions depends solely on the contractor's age. It does not matter whether the person actually receives a pension or only has an established right to one. Reaching the relevant age is enough
This rule affects the total cost of hiring a pensioner under a contract of mandate. Not having to pay FP, FS and FGŚP contributions may encourage employers to hire older people. With pay of at least the minimum wage, the total saving is 2.55 percent of the contribution base; with lower pay it is only 0.10 percent (FGŚP), because FP and FS contributions would not be due anyway.
However, employers must remember to classify the contractor correctly by age. Incorrectly calculating FP, FS and FGŚP contributions may require correcting the settlements with ZUS and lead to possible financial sanctions.
A practical example of contributions
To better understand how contributions work on a contract of mandate with a pensioner, it is worth analysing a specific example. Consider a 65-year-old pensioner working under a contract of mandate with monthly pay of PLN 3,500 gross. The contractor has not opted for voluntary sickness insurance.
The contributions financed by the contractor include a pension insurance contribution of PLN 341.60 and a disability insurance contribution of PLN 52.50. The base for the health insurance contribution is the amount after deducting social insurance contributions, i.e. PLN 3,105.90, on which a health insurance contribution of PLN 279.53 is calculated. The total contributions paid by the contractor amount to PLN 673.63.
- Calculate the contractor's pension insurance contribution
- Work out the contractor's disability insurance contribution
- Determine the health insurance contribution base
- Calculate the health insurance contribution
- Add up all contributions paid by the contractor
On the principal's side, the contributions include pension insurance of PLN 341.60, disability insurance of PLN 227.50 and accident insurance of PLN 58.45. The total contributions financed by the employer amount to PLN 627.55.
Because the contractor has reached the age of 60, the principal does not have to pay the contribution to the Guaranteed Employee Benefits Fund – a saving of PLN 3.50 a month. Contributions to the Labour Fund and the Solidarity Fund would not be due here anyway, because the PLN 3,500 base is lower than the minimum wage (PLN 4,806 in 2026)
| Type of contribution | Contractor | Principal | Total |
|---|---|---|---|
| Pension | PLN 341.60 | PLN 341.60 | PLN 683.20 |
| Disability | PLN 52.50 | PLN 227.50 | PLN 280.00 |
| Accident | - | PLN 58.45 | PLN 58.45 |
| Health | PLN 279.53 | - | PLN 279.53 |
| Total | PLN 673.63 | PLN 627.55 | PLN 1,301.18 |
Registering a pensioner for insurance with ZUS
An employer hiring a pensioner under a contract of mandate must register them for social and health insurance with ZUS. The registration is made on the ZUS ZUA form (registration for insurance) with the appropriate insurance title code 04 11 1X, where the second-to-last digit (1) means an established right to a retirement pension and the last digit depends on whether the contractor has submitted a disability certificate. We prepare ZUS ZUA registrations and contribution settlements for contractors as part of our HR and payroll services.
The date of coverage should be the first day the contract of mandate is in force. If the contract starts in the middle of the month, that day is the start of the insurance period. Setting the date correctly is crucial for calculating contributions and any benefits.
The contractor's insurance registration must be sent to ZUS within 7 days of the date the insurance obligation arises. Missing this deadline may result in financial sanctions for the principal
For a pensioner starting work under a contract of mandate on 11 October 2026, the principal should give that day as the date the insurance began. The insurance title code is 04 11 10, assuming the contractor has not submitted a disability certificate. The ZUS ZUA form must be sent to ZUS by 18 October 2026 at the latest.
Employers often make mistakes when determining the correct insurance title code. The code depends on the contractor's situation, including whether they have other insurance titles or receive benefits. If in doubt, it is worth consulting a tax adviser or ZUS directly.
Monthly settlement of ZUS contributions
After registering the pensioner for insurance, the principal must settle ZUS contributions every month. Settlement returns must be filed on time – by the 15th of the following month for payers with legal personality (e.g. an sp. z o.o. (limited liability company)), by the 20th for other payers (e.g. sole proprietors), and by the 5th for budgetary units (Article 47 section 1 of the Social Insurance System Act). Late filing may result in interest and additional charges.
The contribution base is the gross pay paid to the contractor in a given month. If pay is irregular or varies in amount, contributions must be calculated on the amounts actually paid. Contributions cannot be spread over several months, even if the pay covers a longer period.
- Filing settlement returns within the statutory deadlines
- Calculating contributions on the pay actually paid
- Taking into account all compulsory types of insurance
- Determining the contribution base correctly
- Paying contributions on time to the correct ZUS accounts
Particular attention should be paid to calculating the health insurance contribution correctly. Its base is the amount of pay reduced by the social insurance contributions paid by the contractor. Mistakes in this area are common and may lead to incorrect settlements.
If a contract of mandate ends in the middle of a month, contributions are not recalculated in proportion to the duration of the contract – they are calculated on the income actually paid to the contractor. If pay was paid for the entire period of the contract, contributions are calculated on the full amount
Documentation and employment records
An employer hiring a pensioner under a contract of mandate must keep appropriate documentation related to this work. The basic document is, of course, the contract of mandate itself, which should be kept for the whole time it is in force and for the period required by law. In addition, records of the pay paid and the contributions calculated must be kept.
The documentation should also include copies of documents confirming the contractor's identity and their right to a pension. Although the right to a pension does not always have to be confirmed by documents, ZUS may require the relevant certificates during an inspection.
Working time records within the meaning of the Labour Code (Kodeks pracy) are not compulsory for contracts of mandate, but the parties must agree how the number of hours worked on the mandate is confirmed (Article 8b of the Minimum Wage Act). The contractor has more freedom in organising their working time than a full-time employee, which is one of the main differences between these forms of work.
A consultancy firm hired a 67-year-old pensioner as a business adviser under a contract of mandate for PLN 4,000 a month. Thanks to the exemption from the FGŚP contribution, the employer saves PLN 4 a month (FP and FS contributions would not be due anyway, because PLN 4,000 is less than the minimum wage). The pensioner opted for voluntary sickness insurance, which increases his contributions by an additional PLN 98 a month.
Rights and obligations of the parties
The pensioner contractor has the right to be paid on time and to have their autonomy respected when carrying out the tasks entrusted. The principal may not interfere with how the mandate is performed, as long as the contractor acts in line with the contract and the law. This autonomy is one of the main advantages of a contract of mandate from the pensioner's point of view.
The contractor's obligations include performing the mandate with due diligence and in line with the instructions in the contract. The pensioner must also inform the principal of significant circumstances that may affect the performance of the mandate. If they are unable to perform the mandate, they should notify the principal without delay.
The principal has the right to check how the mandate is performed and to request explanations of how it is carried out. It may also terminate the contract if the pensioner performs the mandate improperly. However, termination should be justified and in line with the terms of the contract.
A contract of mandate can be terminated by either party at any time, unless the contract provides otherwise. Termination should respect any notice period set out in the contract. However, the right to terminate a mandate for important reasons cannot be excluded by contract (Article 746 § 3 of the Civil Code)
Differences in contributions compared with an employment contract
Contributions on a contract of mandate with a pensioner differ in several respects from those on a standard employment contract. The exemption from Labour Fund, Solidarity Fund and FGŚP contributions after reaching the age of 55 (women) or 60 (men) applies in the same way to an employment contract, so it is not a difference between these forms of work. Nor should it on its own decide the choice of the form of work.
An important difference, however, is that sickness insurance is voluntary for contractors. Under an employment contract, sickness insurance is compulsory, which gives the employee the right to sickness benefit on the terms of the Sickness Benefits Act. A pensioner on a contract of mandate must decide for themselves whether they want to be covered by this insurance.
The contribution base may also differ. Under an employment contract, the base includes all components of pay, while under a contract of mandate the base is the pay set out in the contract. This may affect the amount of contributions, especially when pay includes various allowances.
- The same exemption from FP, FS and FGŚP contributions (age 55/60) under both contracts
- Sickness insurance is voluntary
- Differences in the contribution base
- Different rules for terminating contracts
- Different legal protection for the contractor
ZUS inspections and the consequences of mistakes
ZUS regularly inspects whether contributions are correctly calculated for various forms of work, including contracts of mandate with pensioners. Inspections may cover both the correctness of insurance registrations and the accuracy of contribution calculations. Employers should be prepared for a possible inspection and have complete documentation.
The most common mistakes found during inspections are an incorrect insurance title code, incorrect calculation of contributions and late filing of returns. Inspectors also check whether the exemptions from FP, FS and FGŚP contributions for pensioners have been applied correctly.
The consequences of mistakes found can be serious. ZUS may determine the contribution arrears with default interest and impose an additional charge of up to 100% of the unpaid contributions (Article 24 section 1a of the Social Insurance System Act). In cases of significant irregularities, the matter may be referred to law enforcement authorities. That is why it is so important to comply with all contribution rules.
Contribution liabilities become time-barred 5 years from the date they became due (Article 24 section 4 of the Social Insurance System Act). However, the limitation period may be suspended (e.g. during an instalment agreement or enforcement) or interrupted (e.g. by a declaration of bankruptcy) – Article 24 sections 5a–6
Planning the cost of hiring a pensioner
Employers planning to hire a pensioner under a contract of mandate should carefully analyse all the costs involved. In addition to gross pay, the ZUS contributions paid by the employer must be taken into account. For pensioners (women aged 55 and over, men aged 60 and over), these costs are lower because there are no FP, FS and FGŚP contributions. For the contractor, it also matters whether a contract of mandate counts towards your pension.
The total cost of hiring a pensioner under a contract of mandate includes gross pay and the employer's pension, disability and accident insurance contributions. With pay of PLN 3,500 gross, the employer's additional costs are PLN 627.55, giving a total cost of PLN 4,127.55.
Compared with the cost of an employment contract, the contribution rates financed by the principal are the same as under an employment contract, and the exemption from FP, FS and FGŚP contributions after the age of 55/60 applies under both contracts. A contract of mandate with a pensioner may be financially more favourable mainly because the Labour Code does not apply to it (e.g. there is no paid holiday leave or sick pay paid by the employer), and the contractor may opt out of sickness insurance.
| Cost element | Amount | Percentage of pay |
|---|---|---|
| Gross pay | PLN 3,500.00 | 100% |
| Employer contributions | PLN 627.55 | 17.93% |
| Total cost | PLN 4,127.55 | 117.93% |
