Holiday benefit or holiday subsidy from the company social fund? A complete comparison with amounts and taxation for 2026

For HR and payroll departments, June traditionally marks the beginning of the intense holiday season, which in 2026 entails the need for precise settlement of employee benefits. Successive changes in the minimum wage have automatically led to an increase in the contribution rates to the Company Social Benefits Fund (ZFŚS) and the limit for holiday benefits. As a result, employers face a strategic choice: is paying a fixed holiday benefit in 2026 a safer and more economical solution for the company's cost structure, or is implementing the fund and considering social criteria to settle subsidized holidays a better option?

In HR process management, the same mistake is frequently repeated: companies employing fewer than 50 employees confuse these two concepts or pay out arbitrary amounts without proper legal basis. The consequences of such actions can be severe – ranging from the questioning of ZUS contribution exemptions during tax audits, to penalties imposed by the National Labor Inspectorate for flagrant violations of the ZFŚS Act. The structural and procedural differences between these two support mechanisms are fundamental, and any inaccuracy in documentation generates financial risk.

In this guide, we analyze both forms of holiday co-financing. We present hard data, amounts applicable in 2026, legal regulations, and tax calculations that will help optimize your company's social budget.

Holiday Benefit vs. ZFŚS - key differences and concepts

A holiday benefit is a mandatory or voluntary financial payment for companies employing fewer than 50 employees, dependent solely on the employment contract type (full-time/part-time) and the duration of leave, whereas subsidized holidays are co-financing paid from the Company Social Benefits Fund (ZFŚS), the amount of which must depend on the employee's life, family, and financial situation.

Most HR managers make a fundamental semantic error by treating the terms 'holiday benefit' and 'ZFŚS' as synonyms. This is a cardinal error. A holiday benefit is a lump-sum payment 'out of the employer's pocket' (charged to costs), dedicated to small companies. In turn, 'subsidized holidays' is a colloquial term for a holiday supplement that comes directly from funds accumulated in a separate social fund sub-account.

The table below presents a comparison of these two legal institutions.

Comparison Table: Holiday Benefit vs. Subsidized Holidays

Why does company size call the shots?

If, on January 1st of a given year, you employ at least 50 employees calculated as full-time equivalents, you have no choice: you must establish a ZFŚS and implement subsidies through it. If you employ fewer than 50 employees, you have a full range of options. You can:

1. Pay out a holiday benefit.
2. Establish a voluntary ZFŚS and implement subsidized holidays.
3. Opt out of both forms (provided employees are informed by January 31st).

Most companies do this incorrectly, thinking that by employing 20 people and giving each 500 PLN in June, they are providing 'subsidized holidays'. No, quite the opposite – they risk a penalty from the National Labor Inspectorate (PIP) for failing to fulfill informational obligations or for incorrect distribution of funds without proper regulations.

Holiday Benefit 2026: amounts, rules, and automatic legal application

The holiday benefit in 2026 amounts to a maximum of PLN 2417.13 for an employee working full-time under so-called normal conditions, and its amount is strictly linked to the average monthly remuneration in the national economy.

The amount of this benefit is not at the discretion of the CEO. It is legally tied to the basic contribution to the ZFŚS, which in turn is based on the average remuneration in the national economy in the previous year (or its second half, depending on the announcement of the President of GUS). Due to the sharp increase in wages in 2024-2025, the holiday benefit 2026 has reached record levels.

Exact amounts of the holiday allowance in 2026:

• Full-time employment (normal conditions): 2417.13 PLN
• 3/4 time employment: 1812.85 PLN
• 1/2 time employment: 1208.57 PLN
• 1/4 time employment: 604.28 PLN
• Employee performing work in special conditions: 3222.84 PLN
• Juvenile employee (depending on the year of study): from 322.28 PLN to 483.43 PLN

Operational Protocol: How to pay out the holiday allowance step by step

Let's imagine a marketing agency employing 18 people on employment contracts. The owner doesn't want to deal with the bureaucracy of the Company Social Benefits Fund (ZFŚS), collecting income statements, or writing regulations. He decided to pay out holiday allowances.

1. Verification of the holiday request: Graphic designer Tomek submits a holiday request from July 1st to July 14th (14 calendar days, including weekends).
2. Amount calculation: Tomek works full-time. The gross amount of the allowance is exactly 2417.13 PLN.
3. Payment automation: The accountant doesn't investigate how much Tomek's wife earns or if he has children. Only his employment status and the fact that Tomek is actually taking this leave matter.
4. Payment deadline: The company has a statutory obligation to transfer these funds no later than on the last day preceding the start of the leave. If Tomek starts his leave on Monday, July 1st, the money must be in his account by Friday, June 28th.

Process support tools:

For automating this process in small companies, a simple HR and payroll module (e.g., iFirma, wFirma) integrated with an absence calendar is sufficient. The system automatically detects the continuity of 14 days of leave and generates the appropriate component on the payroll.

Holiday Allowance 2026: amount, limit, and social criterion

The holiday allowance does not have a single statutory maximum or minimum amount in 2026 – its amount is determined solely by the regulations of the company's Company Social Benefits Fund (ZFŚS), with the absolute condition for payment being the differentiation of amounts based on the employee's income criterion.

Let's move on to options for larger players or companies that have consciously opted for the Company Social Benefits Fund (ZFŚS). Regarding the holiday allowance, the 2026 amount is a fluid concept. You can stipulate in the regulations that the lowest-earning employee receives PLN 3500, and the highest-earning employee receives PLN 800. And this is fully legal. However, it would be illegal to pay everyone PLN 1500 "to be fair." For the Labor Inspectorate and the Social Insurance Institution (ZUS), equal payment in this case constitutes a violation of the law.

How does the differentiation mechanism work (Social Criterion)?

The employer must create so-called subsidy tables, based on income thresholds per family member. Let's look at a real-world example from the ZFŚS regulations of a medium-sized manufacturing company:

Case Study: The Pitfall of Equal Treatment in the ZFŚS

A logistics company from Poznań (65 employees) paid all employees an equal "holiday allowance" of PLN 1500. During a ZUS inspection, the inspector questioned the social nature of these payments. He determined that since the amount was identical for everyone, it was in fact a hidden salary bonus, not social assistance. The consequence? The company had to pay overdue ZUS contributions, plus interest, for 3 years back on all paid allowances. The total cost of the error exceeded PLN 45,000.

You can read more about how to manage the fund's expenditure structure and what else can be financed without legal risk in our article on what funds from the Company Social Benefits Fund (ZFŚS) can be used for.

Essential condition: 14 days of annual leave in HR practice

Both for the holiday benefit and the holiday allowance (provided the fund's regulations stipulate so), the basic condition for payment is the employee taking uninterrupted annual leave lasting a minimum of 14 consecutive calendar days.

The 14-day rule causes employees sleepless nights and gives rise to many myths. Let's debunk the most important one: 14 days of annual leave does not mean 14 working days. It refers to calendar days. In practice, this usually means 10 working days (e.g., two full weeks from Monday to Friday) framed by weekends.

Important legal nuances that managers often overlook:

• Only annual leave: These 14 days do not include periods of sick leave (L4), maternity leave, paternity leave, or unpaid leave. If an employee planned 14 days off but fell ill on the third day and received an L4, the continuity of the leave is interrupted. The holiday allowance is not granted for this period (it must be accounted for during the next attempt at a long leave).
• Can the Social Benefits Fund regulations change this? For the holiday allowance, the 14-calendar-day rule is a strict statutory requirement (Art. 5 sec. 5 of the Social Benefits Fund Act). However, for subsidized holidays from the Social Benefits Fund, it... depends on your company's regulations. The Social Benefits Fund Act does not impose a 14-day leave requirement on the fund. Theoretically, an employer can stipulate in the regulations that the subsidy is granted even for 5 days of leave. Nevertheless, in 95% of Polish companies, the statutory scheme (14 days) is replicated to ensure employees take a real, long rest.

Employees often ask about other forms of subsidies, e.g., for the purchase of sports equipment or glasses during preparations for the season. A comprehensive list of application templates for such situations can be found in the compendium on subsidies for glasses, equipment, and recreation in 2026.

Tax and Contribution Analysis: How to Avoid Issues with ZUS and the Tax Office

Fiscal matters are an area where savings can prove to be illusory. Depending on the chosen path (holiday allowance vs. subsidized holiday), income tax (PIT) and social security contributions are structured quite differently.

Holiday Allowance - Taxes and ZUS

The holiday allowance is fully exempt from ZUS contributions (pension, disability, sickness, accident, health), but only up to the statutory limit (i.e., in 2026, up to PLN 2417.13 for a full-time employee). If an employer generously pays an employee PLN 3000 as a holiday allowance, the excess amount (PLN 582.87) must be fully subject to ZUS contributions.

Note: The holiday allowance is ALWAYS subject to income tax (PIT). There is no monetary exemption here. The employee will receive the amount in their account, reduced by the tax advance payment.

Subsidized Holiday - Taxes and ZUS

Here, the situation is much more favorable for the employee, but it requires strict adherence to formalities:

• ZUS: All payments from the Social Benefits Fund (including subsidized holidays) are fully exempt from ZUS contributions, regardless of their amount. The condition? Funds must be granted according to social criteria. If you pay even PLN 5000 of "holiday pay" to the poorest employee according to the regulations, ZUS will not take a single penny from it.
• PIT: A holiday pay limit tax exemption. In 2026, in-kind and monetary benefits paid entirely from the Company Social Benefits Fund (ZFŚS) are exempt from income tax up to a total amount of PLN 1000 per tax year. Every zloty above this thousand must be taxed at the employee's standard tax rate (12% or 32%).

Market Report 2026: Employee Benefits and Funding Trends

The traditional approach to "holiday pay" is becoming obsolete. According to the latest market research on the transformation of social benefits in Poland, the model where an employee submits a paper vacation request once a year, and accounting manually transcribes amounts, generates a gigantic bureaucratic burden.

Key market data:

• 73% of companies employing between 20 and 50 people prefer to completely forgo holiday benefits, transferring these budgets to flexible cafeteria systems.
• Generation Z and Millennials (currently making up the majority of the workforce) value immediate access to micro-benefits (e.g., subsidies for weekend trips, Booking.com reservations directly from an app) more highly than a one-time cash injection in July.
• Companies that have implemented digital platforms for managing the Company Social Benefits Fund (ZFŚS) report a reduction in vacation request processing time by 82%.

Modern employee benefits platforms, such as Nais, are revolutionizing this ossified process. Instead of forcing employees to fill out paper income statements and wait weeks for a transfer, this process can be digitally mapped. The employee submits an income declaration online, the system automatically assigns them to the appropriate budget basket, and funds for "holiday pay" can go directly to their virtual benefit card, which they can use to finance hotels, flight tickets, or access to recreational facilities.

Most common employer mistakes when settling holiday benefits

Avoiding penalties from PIP and employee claims requires eliminating four fundamental mistakes that are commonly repeated in Polish enterprises.

• Error 1: Payment of holiday allowance after the holiday. The law clearly states: the money must be in the account before departure. If an employee returns tanned and only then receives the transfer, the company is violating regulations.
• Error 2: Seniority criterion instead of social criterion for "holiday under the pear tree". Making the amount of the "holiday under the pear tree" dependent on whether someone has worked for the company for one year or five years. The seniority criterion IS NOT a social criterion. The amount of the subsidy from the Company Social Benefits Fund (ZFŚS) depends only on the employee's financial situation, not on their loyalty to the employer.
• Error 3: Ignoring employees on maternity/parental leave. These individuals retain employee status and have full right to use the Company Social Benefits Fund (ZFŚS) resources (including "holidays under the pear tree"), provided they meet the income criterion. Omitting them when distributing funds is a direct path to a discrimination lawsuit.
• Error 4: Lack of formal opt-out. If you employ 30 employees and do not wish to pay holiday allowances or establish a Company Social Benefits Fund (ZFŚS), you must inform the staff by January 31st (in a manner customary for the company, e.g., via email, intranet). Failure to provide such information means that the obligation to pay holiday allowances for that year automatically comes into effect!

FAQ 

‍

Does a newly hired employee have the right to "holidays under the pear tree"?

Yes, provided they have worked for the company for a period that allows them to acquire the right to and take 14 days of uninterrupted annual leave (this year or as partial leave) and have submitted a relevant income statement, and the fund's regulations do not introduce additional, legal restrictions (e.g., the right to use the fund only after a probationary period, although this last point is sometimes disputed by the National Labour Inspectorate (PIP)).

Is a bailiff's deduction made from holiday allowance and "holidays under the pear tree"?

Holiday allowance is subject to bailiff enforcement under the same rules as remuneration for work (the tax-free amount applies). In contrast, funds from the Company Social Benefits Fund (ZFŚS) ("holidays under the pear tree"), as social benefits, according to the prevailing case law, do not constitute remuneration for work and may be subject to full seizure, unless the enforcement concerns alimony.

What if an employee works two jobs at different companies?

They can receive subsidies at both workplaces. At the first company (under 50 employees), they will receive holiday allowance if they take 14 days of leave there. At the second company (which has a Company Social Benefits Fund (ZFŚS)), they will apply for "holidays under the pear tree", declaring their income and also taking the required leave. These two systems are not mutually exclusive at a national level.

Can a company director/CEO receive "holidays under the pear tree"?

Yes. Every person employed under an employment contract – regardless of their position (from cleaner to CEO) – is entitled to use the social fund. If the CEO declares in their statement that their income per family member places them in the lowest subsidy bracket (which is unlikely with high earnings, but possible with a large number of dependents), they will receive a correspondingly lower or higher amount according to the subsidy table.

Are "holidays under the pear tree" available to B2B contractors or contract workers?

Holiday allowance is exclusively for permanent employees (Labour Code). In contrast, the Company Social Benefits Fund (ZFŚS) regulations may extend the list of eligible individuals (including for "holidays under the pear tree") to include those on civil law contracts (mandate contract, contract for specific work) or retired former employees. Individuals on B2B contracts are almost always excluded from this list due to tax reasons and the risk of redefinition of the employment relationship.

Keys to success

• Match the tool to the scale: If you have a small team (<50 people) and value peace of mind, opt for the holiday benefit. You'll pay tax, but you'll avoid collecting financial declarations from employees.
• Mind the calendar: Remember the magic of the number 14. In both HR documentation and payroll systems, 14 consecutive calendar days on a leave request is the key that unlocks legal exemption from ZUS contributions.
• Social benefits are not bonuses: When it comes to holiday subsidies from the company social fund, always differentiate payment amounts. Equal treatment within the Company Social Benefits Fund (ZFŚS) is the easiest way to incur a costly conflict with the Social Insurance Institution (ZUS).
• Embrace digitalization: Manually processing leave requests and collecting paper income declarations are relics of the past. Migrating social benefit processes to modern benefit platforms eliminates human error and saves HR departments time.

‍